02 NETCADA Request * NETCADA
Northeast Texas Council on Alcohol ~S~ Drug Abuse
25 1~ NW · Paris, Texas 75460 · (903) 737-4394 · 1-800-221-2992 · (903) 737-4396 fax
September 4, 2003
Michael Malone, City Manager ",~
and Paris City Council Members
City Hall
P.O. Box 9037 ~
Paris, Texas 75461-9037
Re: Request for City of Paris Funding in the next Fiscal Year
Dear Mr. Malone and Paris City Council Members,
I want to first thank you for your past financial support of the Northeast Texas Council on
Alcohol and Drug Abuse [NETCADA]. Your support has allowed us to provide critical help to
hundreds of Paris residents who have experienced problems related to alcohol, tobacco, or other
drugs, as well as helping hundreds of youth resist developing substance abuse problems.
With the help of your support we have been able to provide many important services to Paris
citizens to combat what has become the number one social problem in our nation. The abuse of
alcohol and drugs costs Texans $19.3 billion annually. That's over $1,000 fir every man, woman,
and child in the state. We are combating this problem in Paris on several levels. We are
providing prevention services to early grade schools students and some middle school students.
We provide intervention services to many youth who are starting to have problems. We also
provide screening, assessment, and referral services to all ages. We provide a variety of
substance abuse related educational classes to adults and youth. Finally, we provide a variety of
substance abuse outpatient treatment services.
The Texas Commission on Alcohol and Drug Abuse (TCADA) requires a 5% match on the
funding they provide. Through a very competitive process, we have been successful in bringing
needed services to this area where a dollar of local match covers $20 of state funding. A study
by Texas Perspectives found that substance abuse prevention has a savings from reduced
outpatient treatment and counseling expenditures alone of almost $5 for every prevention
dollar spent. The study also showed the overall benefit-cost ration of treatment services in
Texas to be 3:1.
We also provide treatment services locally for many individuals who have been sent to a
Substance Abuse Felony Punishment Facility as a phase down from that program. The
funding for that program only covers about 69% of the costs and needs local funds to
supplement this important service.
These programs are the best way we can combat illegal drugs, which 80 percent of
Americans considered to be a very or extremely serious problem. Sixty-four percent of
Texas male inmates report they have substance abuse problems. Up to two-thirds of all
cases of child abuse and neglect involve substance abuse. We can either spend money
dealing with this problem directly or spend more money dealing with the resulting costs.
www. netcada.org ~
Serving Bowie, Camp, Cass, Delta, Fannin, Franklin, Hopkins,
Lamar, Morris, Red River, Titus, Wood counties Un~eaWay
Agent
Because of our increased need, I am requesting that the City of Paris continue the $5,000 in the
yearly financial assistance you have been providing since FY 1996. We are, of course, requesting
the other counties and cities we serve to also help us with this funding need.
It should be noted that the City of Paris has not been alone in making financial contributions to a
local Council on Alcohol and Drug Abuse. For the past several years, the City of Sulphur "
Springs has been contributing $2,500 annually to support NETCADA. Many other cities
financially support the Councils on Alcohol and Drug Abuse serving their locations. For
example, East Texas Council on Alcohol and Drug Abuse headquartered in Longview receives
financial support from the Cities of Gladewater, Longview, Gilmer, Kilgore, and Carthage anSong
others. Sister Communities Council on Alcohol and Drug Abuse headquartered in Tyler receives
financial support from the City of Tyler.
Thank you for your consideration of this request.
i~cerely,
//Jim Arneson
'~ Executive Director, NETCADA
Netcada (NET)
Balance Sheet
All Funds
June 30, 2003
0910412003 15:01:03 · Page I
Assets
10-110o-o0o Liberty Nationar 5,939.75
10-1120-000 Petty Cash 260.00
36-1120-000 PettyCash ~ 30.00 '
10.-1121-000 Petty Cash - Youth Services 18.74
10-1200-000 City National (SS) 863.40
10-1201-000 Fannin Bank 515.00
10-1230-000 Grants Receivable Reg. 4 107,012.31
10-1231-000 Grants Receivable Reg. 3 15,976.74
10-1240-000 Contracts Receivable - CSCD
(2,273.00)
10-1242-000 Cont facts Receivable - TDCJ 1,832.92
10-1243-000 Contracts Receivable - TRA Reg. 3 (8,741.70)
10-1244-000 Contracts Receivable - TRA Reg. 4 6,112.95
10-1246-000 Contracts Receivable - FR 4,966.32
10-1247-000 Contracts Receiveable TDD 4,365.00
10-1248-000 Contracts Receivabre - Fed Probation 3,243.00
10-1249-000 Private Ins. Receivable 1,600.00
10-1250-000 Employee Receivables - Travel Advances 2,111.99
10-1250-223 Other Receivables 500.00
10-1360-000 Prepaid Workers Compensation 2,320.50
10-1370-000 Prepaid Professional Liability 5,902.50
10-1375-000 Pre-Paid Insurance 291.00
10-1550-000 Equipment 130,535.67
10-1560-000 Furniture & Fixtures 29,710.89
10-1570-000 Vehicles 52,240.89
10-1650-000 Accumulated Depreciation (126,054.38)
Total Assets $239,280.49
Liabilities
10-2050-0oo Accounts Payable (1,844.68)
10-2060-000 Check Distdbuti0n
(22,757.02)
10-2100-000 Wages Payable 3,789.17
10-2180-000 Working Capital Advances 63,438.00
10-2190-000 Employee Retirement Payable 138.33
10-2220-000 FICA, M/C, & FED W/H PAYABLE 14,550.61
10-2222-000 OK. State W/H Payable 376.65
10-2240-000 Texas Unemployment (172.66)
10-2250-000 United Fund Payable 31.00
10-2330-000 KSS Funds 950.00
Total Liabilities $58,499.20
Net Assets
10-3100-0o0 Unrestricted Fund Balance 119,408.86
10-3200-000 Net Investment. Proper[7 65,454.77
Excess Revenues Over Expenses (3,870.13)
Total Net Assets $180,993.50
Total Liabilities and Net Assets $239,492.70
Staff Functional Annual
Name Title Salary *
YOUNGBLOOD Adult Services Director 34,000
HURST Adult Office Assistant 18,000
RIDER Counselor LCD, C 30,000
SCUDDER Counselor LCDC 18,000 "~'
HICKS Counselor LCDC CI 18,000
AGNEW Counselor LCDC P/T 10,000
THOMASON Counselor ['CDC 26,000
HAMMONS Counselor'LCDC 28,000
DANIELS Counselor LCDC 28,000
O'BRYAN Counselor LCDC 28,000
BROWN Counselor LCDC 29,000
LANG Counselor LCDC 29,000
MOORE Counselor LCDC CI 18,000
PHILLIPS Youth Services Director 34,000
MITCHELL Youth Office Assistant 18,000
CARROLL Counselor P/T Prevention Spec 12,000
O'MALLEY Counselor Prevention Spec 24,500
COURSEY Counselor Prevention Spec 25,500
DURRENCE Prevention Specialists 25,000
HUBBARD Counselor Intervention/Prevention 27,000
LLOYD Counselor Intervention/Prevention 24,000
HUIE Counselor Intervention/Prevention 30,000
KING Counselor Prevention Spec 26,000
PHIFER Counselor Intervention/Prevention 31,900
PROVENCE Counselor Prevention Spec 25,000
PUCKETT Coordinator Youth 26,000
ERWIN Coordinator Youth 24,000
ARNESON Executive Director 38,000
COFFMAN Chief Financial Officer 24,000
HUGHES Admin / Human Services 21,000
PRESELY Financial Specialist 17,000
CROSBY Receptionist 15,800
MARK Receptionist 12,500
T~t ~I, E,e~n,~C~ts
Fringe
Rate or Basis for Calculation Benefits
FICA 7.65% of Gross Pay 60,830
Unemployment Insurance 0.8% of Gross Pay 6,203
Workers' Compensation 0.9% of Gross Pay 7,157
Health Insurance 10.37% of Gross Pa}, 82,462
Other* Pension 8.30% of Gross Pay 66,002
* Includes a 2% cost of living adjustment or raise for our current Fiscal Year
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Report of Examination
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
For the Year Ended August 31, 2002
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Table of Contents
For flue Year Ended August 31, 2002
FINANCIAL SECTION
Unqualified Opinion on Financial Statements and Supplementary
Schedule of Expenditures of Federal Awards 2
FINANCIAL STATEMENTS:
Statement of Financial Position 4
Statement of Activity 5
Statement of Cash Flows 6
Statement of Functional Expenses 7
Notes to Financial Statements I0
FEDERAL FINANCIAL ASSISTANCE SECTION
Schedule of Expenditures of Federal Awards .: 17
Schedule of Expenditures of State Awadds 18
Notes to the Schedule of Expenditures of Federal and State Awards 19
Independent Auditors' Report on Compliance and on Internal Control
Over Financial Reporting Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 20
Independent Auditors' Report on Compliance with Requirements
Applicable. to Each Major Program and Internal Control Over
Compliance in Accordance with OMB Circular A-133 22
Schedule of Findings and Questioned Costs 24
Plan for Corrective Action 28
Summ~h'y Schedule of Prior Audit Findings 31
FINANCIAL SECTION
Malnory McNeal & Company, PC
Certified Public Accountants
Mark 1/t. Marnory, CPA Johnna W. McNeal, CPA Members ol
American Instilute of Certified Public Accountants
Ginny W. Minter, CPA Texas Socie¥ of Certified Public Accountants
Unqualified Opinion on Financial Statements and Supplementary
Schedule of Expenditures of Federal Awards
l'~d~pend~nt Anti(thrU' R~nrt
Board of Directors
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
136 Grand Ave.
Paris, Texas 75460
Members of the Board of Directors:
We have audited the accompanying statement of financial position of Northeast Texas Council
on Alcohol and Drug Abuse, Inc. (N-ETCADA) as of August 31, 2002, and the related statements
of activity, functional expenses, and cash flows for the year then ended. These financial
statements are the responsibility of NETCADA's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducte~t our audit in accordance with U.S. generally accepted auditing standards; 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 OF STATES, 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 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 opi.nion, the financial statements referred to above p?sent fairly, in all material respects,
the financial position of NETCADA as of August 31, 2002, and the changes in net assets and its
cash flows for the year then ended in conformity with U.S. generally accepted accounting
pr/ne/pies. In accordance with GOVERNMENT AUDITED STANDARDS, we have also issued
our report dated June 5, 2003, on our consideration of NETCADA's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations,
contracts and grants.
5551 Yale Boulevard Dallas, Texas 75206 Telephone: 214-692-5019 Facslmile: 214-69t-7007
1711 ClarksviHe Street Paris, Texas 75450 Telephone: 603-784-6700 Facsimile: 903-784-6934
2
Our audit was performed for the purpose of forming an opinion on the basic financial statements
of NETCADA taken as a whole. The accompanying schedule of expenditures of federal awards
and schedule of expenditures of state awards required by U.S. Office of Management and Budget
Circular A-133, AUDITS OF STATES, LOCAL GOVERNMENTS AND NON-PROFIT
ORGANIZATIONS, 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 relation to the basic financial statements taken
as a whole.
Paris, Texas Certified Public Accountants "
June 5, 2003
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Statement of Financial Position
August 31, 2002
Assets
Current Assets
Cash $7,416
Grant Receivable (See Note 4) 117,503
Contract Receivable (See Note 4) 29,439
Other Receivables 2,100
Prepaid Expenses 9,459
Total Current Assets 165,917
Property and Equipment
Vehicles 52,241
Furniture and Fixtures 29,711
Equipment 160,084
Less: Accumulated Depreciation (162,741)
Total Property and Equipment 79,295
Total Assets $245,212
Liabilities and Net Assets
Current Liabilities
Accounts Payable $73,222
Payroll Taxes Payable 7,083
Other Payables 980
Total. Gm-rent Liabilities 81,285
Net Assets
Unrestricted 163,927
Temporarily Restricted
Restricted
Total Net ~.ssets ~ 163,927
Total,Liabilities and Net Assets $245,212
The accompanying notes are an integral part of this statement
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Statement of Activity
For the Year Ended August 31, 2002
Public Support:
Federal Grants and Contracts $1,094,894
State Grants and Comets 108,247
Contxacts for Services 53,036
Donations 30,806
Total Public Support 1,286,983
Net assets released fi-om resffictions
Restrictions satisfied by spending
Revenue:
Class Fees 64,534
Interest 445
In-Kind Labor/Materials/Rent 27,514
Other 9,503
Total Revenue 101,996
Total Unrestricted Public Support and Revenue 1,388,979
Expenses
Program Services:
OSAR 225,918
Tobacco 50,742
YPI 198,227
YP]~ 356,563
DW'~O/M~ 34,966
CCP 64,109
TDC$ 67,747
TRA. 143,027
CSCD 30,547
TDD 103,221
Field Referral 4,600
Supporting Services:
Management and General 60,105
Depreciation 36,687
Total Expenses 1,376,459
Increase (Decrease) in Unrestricted Net Assets 12,520
Ter~porarily Restricted Net Assets
Net assets released from resections
Decrease in Temporarily Restricted Net Assets
Net Assets at Beginning of Year 151,407
Net Assets at End of Year $163,927
The accompanying notes are an integral part of this statement.
5
Northeast Texas Council on Alcohol and Drag Abuse, Inc.
Statement of Cash Flows
For the Year Ended August 31, 2002
Increase (Decrease) in Cash and Cash Equivalents
Cash flows fi.om operating activities:
Change in Net Assets $12,520
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation 36,687
Changes in assets and liabilities, net:
(increase)/Decrease in grant receivables (73,847)
(Increase)/Decrease in contract receivables 17,196
(Increase)/Decrease in prepaid expenses (843)
Increase/(Decrease) in accounts payable 71,376
Increase/(Decrease) in other payables 66
Net cash provided/(used) by operating activities 63,155
Cash flows from investing activities:
Purchases of property, plant and equipment (30,667)
Net cash provided/(used) in investing activities (30,667)
Net increa~e/(decrease) in cash and cash equivalents 32,488
Cash and cash equivalents at beginning of period (25,072)
Cash and cash equivalents at end of period $7~416
The accompanying notes are an integral part of this statement
6
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Statement of Functional Expenses
For the Year Ended August 31, 2002
Program Services
DWI/MO
OS.AR. Tobacco YPI YPP MIP
Grant Grant Grant Grant Programs
Functional Expenses
Salaries $135,018 $23,909 $115,791 $170,271 $18,755
Fringe Benefits 36,283 6,445 31,511 45,822 5,143
Travel 11,699 742 14,747 17,776 2,714
Equipment ..........
Supplies 9,750 8,200 11,454 81,763 2,058
Contractual 1,246 7,001 1,658 5,722 1,706
In-Kind ..........
Other 31,922 4,445 23,066 35,209 4,589
Total Functional
Expenses $225,918 $50,742 $198,227 $356,563 $34,966
The accompanying notes are an integral part of this statement
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Statement of Functional Expenses
For the Year Ended August 31, 2002
Program Services
CCP TDCJ TP,.A CSCD . TDD
Contract Contract Contract Contract Contract
Functional Expenses
Salaries $32,752 $39,358 $96,322 $19,948 $66,567
Fringe Benefits 8,859 10,612 26,069 5,331 17,908
Travel 1,159 3,592 2,694 1,886 2,599
Equipment ..........
Supplies 2,557 ' 1,407 5,064 963 2,752
Contractual 380 4,994 910 6 716
In-Kind ..........
Other 18,402 7,784 11 ~968 2,413 12,679
Total Functional
Expenses $64,109 $67,747 $143,027 $30,547 $103,221
The accompanying notes are an integral part of this statement
Northeast Texas Council on Alcohol and Drag Abuse, Inc.
Statement of Functional Expenses
For the Year Ended August 31, 2002
Supporting
Pro,ram Services Services
Program Management
Field Services and
Referral Total General Totals
Functional Expenses
Salaries $2,785 $721,477 $19,799 $741,276
Fringe Benefits 752 194,735 5,456 200,191
Travel 5 59,613 845 60,458
Equipment ~ ~ ......
Supplies 149 126,117 1,680 127,797
Contractual 59 24,398 603 25,001
In-Kind .... 27,514 27,514
Other 850 153,327 4,208 157,535
Total Functional
Expenses without
Depreciation 4,600 1,279,667 60,105 1,339,772
Depreciation .... 36,687 36,687
Total Functional
Expenses with
,D, epreciation $4,600 $1,279,667 $96,792 $1,376,459
IlI
The accompanying notes are an integral part of this statement
9
Northeast Texas Council on Alcohol mud Drug Abuse, Inc.
Notes to Financial Statements
For t3e Year Ended August 31, 2002
NOTE 1 - ORGANIZATION
The Northeast Texas Council on Alcohol and Drug Abuse, Inc. ("NETCADA.") (formerly
Lamer County Alcohol/Drug Council, Inc.) was organized in Texas in 1977 as a nonprofit
corporation for the purpose of improvlng the health, safety and general welfare of the citizens of
Lamer County, Texas, thxough educational and counseling programs. The region served by
NETCADA includes Lamar County, Red River County, Delta County, Fannin County, Franklin
County, Bowie County, Titus County, Wood County, Hopkins County, and Camp County with
some interaction with other adjoining counties in Texas withLu a 100 mile radius.
NETCADA is an exempt organization for Federal income tax purposes under Section 501(c)(3) of
the Internal Revenue Code.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. ~a~i~ nfAccmmt~nE
NETCADA follows standards of accounting and financial reporting for voluntary health and
welfare organizations as described in the American Institute of Certified Public Accountants in its
"industry Guide for Audits of Voluntary Health and Welfare Orgardzafions." Accordingly, the
financial statements are prepared on an accrual basis of accounting.
B. ~tlrn~te~-
requLres management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ fi.om those estimates.
For purposes of the statements of cash flows, the Council considers all ki~ly liquid investments
available for current use with an initial maturity of three months or less to be cash equivalents.
g. Cash Match Allncatinn
In accordance with terms and provisions of the various grant contracts, NETCADA is generally
required to provide a specific percentage of local matching funds to support the grant programs.
E. grn"perty and lqquipment
Donated assets are recorded at their estimated fair market values at the date of donation. Such
donations are reported as unrestricted support unless the donor has restricted the donated asset to a
specific purpose.
10
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Notes to Financial Statements
For the Year Ended August 31, 2002
NOTE 2 - SUIvhM3~Y OF SIGN]~CANT ACCOUNTING POLICrt~S - (CONTINUED)
Expenditures for capital assets are stated at cost. Depreciation of equipment, furniture and fixtures,
and vehicles is calculated on the straight-lLue method over the estimated useful lives of the
respective assets. Changes in fixed assets are as follows:
Balance Balance
g-gl~01 Additicm~ R e, tiremeuf~ g-'41-02
Equipment $129,417 $30,667 $160,084
Fumit~e and
Fixtures 29,711 29,711
Vehicles 52,241 52,241
Loss.'
Accumulated
Depreciation
F. 'I~n:~nc.i~l ~qt~tem~t Pre~entntlcm
NETCADA has adopted Statement of F~ci~ Aeco~t~g St~ds (SFAS) No. 117, "F~cial
Statement~ of Not-fo~-Profit O~g~zatio~." Unde~ SFAS No. 117, ~TC~A is ~ed to
repo~ ~o~ation reg~d~g its ~cial position ~d acfi~fies acco~g to ~ee closes of net
~sets (~es~ct~ net ~sets, t~por~ly res~ct~ net assets, ~d p~ently res~ct~ net
~sets) b~ed upon ~e existence or absence of dono~-~pos~
new st~d~d, ~TC~A h~ discon~ued it ~se of ~d acco~t~g ~d h~, accord~gly,
~ecl~sified its ~cial s~temen~ to present closes of net ~se~.
* U~es~ct~ ne~ ~sets - Net ~sets ~at ~e not sub~t to donor-~posed stipulation.
* Tempor~ly res~cted net ~sets - Net ~sets subject to donor-~posed stipulafio~ ~at may or
will be met, eider by actions of~e Agency ~or the p~sage of t~e. ~en a resection exp~es,
temp?~ly res~cted net ~sets ~e recl~sified to ~es~cted net ~sets ~d ~epo~ed ~ the
statement of activi~ ~ net assets ~eleased ~om res~ct(ons.
* Pendently res~cted net asse~s - Net assets subject to donor-res~cted stipulatio~ ~at ~e to be
m~t~ed pendently by the Agency. Generally, ~e donors of~eses ~sets pe~t ~e Agency
to use all o~ p~ of the ~come e~ed on ~y relate~ inves~ents fo~ general o~ specific p~oses.
1!
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Notes to Financial Statements
For the Year Ended August 3 I, 2002
NOTE 2 - SUMMARY OF SIGNII~IC~ ACCOUNTING POLICIES (CONTINUED)
G. (3rant~ ~ncl (2nntract~
Support received under grants and contracts are 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 restrictions expire 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
resection. 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 nets assets released from restriction. The
mount recognized is either exact cost or unit cost, depending on the terms of the contract. Grant
revenues recogrfized but not yet received are reported as grant receivable.
H. Public gnppprt ~nd Revenue - Donated gerv~ce~
NETCADA's support and revenues, which are recognized when earned, are primarily from six
sources: grants, contracts, client fees, interest, donations, and other.
Certain entities contribute substantial mounts of materials and services toward the fulfillment of
projects initiated by NETCADA. To the extent that the contributions of materials and services are
made under the control of NETCADA, are objectively measurable, and represent program or
support e~penditures which would otherwise by incurred by NETCADA personnel, they are
reflected in both publ/c support and program expenditures in the accompanying financial
statements.
The Council received donated services from volunteers. The estimated value of these donated
services during the year ended August 31, 2002 amounted to approximately $27,514.
NETCADA allocates its expenses on a functional basis among its various programs and support
services. Expenses that can be identified with a specific program are allocated directly according to
their natural expenditure classification. Other expenses .that are common to several functions are
allocat.ed based on management's estimates. ;
NETCADA's principal programs comprise:
OSAR - Outreach, Screening, Assessment, and Ret'erral of clients for appropriate treatment and
placement.
Tobacco - Program to increase awareness of the dangers of tobacco usage.
12'
Northeast Texas Council on Alcohol and Drag Abuse, Inc.
Notes to Financial Statements
For the Year Ended August 31, 2002
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
YPI - Youth Intervention Program designed for youth who are akeady experimenting with drugs or
exh/bit other risk related behaviors. Strategies include education, skill training, problem ID, and
referral counseling, cornmurdty based contacts. Some particular programs sponsored by this grant
are Teen Tuming Point, Positive Step, and Truancy Education are in th.is program.
YPP - Youth Prevention Program designed for universal prevention that reaches the general
population of youth. Strategies include prevention education, community contacts, alternative
activities, and presentation that include minors and tobacco information. Some programs
sponsored by the grant include All Stars, Living Life, and All Stars Camp.
DWI/MO/MIP Classes - Classes provided by the organization for alcohol education programs for
minors, minors-in-possession, and driving under the influence.
CCP - Commurdty Coalition is a diverse group of community organizations and individuals
organ/zed to increase the health and well being of youth and to reduce alcohol, tobacco, and other
dependencies in the youth of Larnar, Red River, Delta, and Hopkins counties. Strategies include
contact and environmental and social policy. Kids Safe Saturday is sponsored by this grant.
TDCJ - Texas Depa~hnent of Cfinfinal Justice Programs for people on parole and/or probation.
TRA - Treatment Adult, provides ~-eatment to adult clients.
CSCD - Community Supervision Corrections Department, provides intensive diversion to last
chance for federal offenders.
TDD - Dual Disability provides treatment to clients who have a disability in addition to substance
abuse.
Field Referral - a Texas Department of Criminal Justice program to help clients referred by parole
and probation officers.
13
Northeast Texas Council on Alcohol and Dm§ Abuse, Inc.
Notes to Financial Statements
For the Year Ended August 31, 2002
NOTE 3 - GRANT AND CONTRACT RECEIVABLES
Grant and Contract Receivables at August 31, 2002, consisted off
Grants Receivable
Due bom the Texas Commission on Alcohol and Drug Abuse (TCADA):
OSAR (IV) $7,374
OSAR ('ill) 4,664
YPI 26,796
YPP (IV) 21,362
YPP (m) 9,460
CCP 13,739
YPP TX
Total $108,340
Due from Bowie County Health Department (Texas Department of Health):
Tobacco
Total Grant Receivable $
Contracts Receivable
Due from the Texas Department of Criminal Justice (TDCJ):
TDCJ $8,259
Field Referral 223
Total $8,532
Due from Texas Commission on Alcohol and Drug Abuse (TCADA):
TRA (m) $14,497
,, TRA (IV) 4,499
Total $18,996
Due from US Department of Criminal Justice:
Federal Probation
Total Contracts Receivable
NOTE 4 - PENSION PLAN
NETCADA has established a defined contribution pension plan for the benefit of its employees.
Under the plan, a predetermined contribution is made to the account of each individual participating
· employee (only full time employees may participate), based on annual compensation levels, and
accrued for their benefit. Employees may contribute an equal amount if they so choose and are
fully vested after the completion of their probationary period to the extent of such contributions.
Pension plan expenditures by NETCADA were $ 67,578 during the year ended August 31, 2002.
14'
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Notes to Financial Statements
For the Year Ended August 3 I, 2002
NOTE 5 - LEASE COMMITIvlENTS
During the year ended August 31, 2002, NETCADA leased office space in several counties. Each
lease contract is either on a month-to-basis or a twelve-month contract. Rent expense incurred
during the fiscal year is as follows:
Rent R*rpen~e
Hopkins County $10,200
Bonham $1,000
Bonham - Campus $2,304
Titus $4,800
Red River County $3,850
Franklin $3,300
Bowie $3,825
NETCADA entered into a five-year lease for office space in January of 2001. Rent expense
incurred during the year ended August 31, 2002 amounted to $25,800. Rental obligations for the
next five years are as follows:
August 31, Obligation
2003 $25,800
2004 $25,800
2005 $25,800
2006 ~11 ;800
Total ~
NOTE 6 - CONTINGENT LIABIL1T~S
N~'CADA participates in numerous state and federal grant programs, which are governed by
various rules and regulations of the grantor agency. Costs charged to the respective grant programs
are subject to audit and adjustment by the grantor agencies; therefore, to the extent that NETCADA
has not complied with the rules and regulations goverrdng the grants, refunds of money received
may be. required and the collectibillty of any related receiyable may be impaired. In the opirSon of
NETC&DA there are no significant contingent liabilities; 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.
15
FEDERAL FINANCIAL ASSISTANCE SECTION
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Expenditures of Federal Awards
For the Year Ended August 31, 2002
Federal Grantor/ pass-through
Pass Through Grantod CFDA Contract Grantor's Federal
Program Title Number Number Number Expenses
Major Pro,ams:
U.S. Department of Health
Substance Abuse Prevention Treatment Block Grant
pass-through to TCADA
Youth Prevention Intervention ** 93.959 10380 04-0868-022-YPI $204,735
Youth Primary Prevention **' 93.959 10380 04-0848-021-YPP 241,780
Youth Primary Prevention ** 93.959 10447 03-1234-021-YPP 74,889
Youth Primary Prevention ** 93.959 10380 04-0931-021-YPP 46,568
Community Coalition Project ** 93.959 10380 04-0858-021-CCP 58,415
Dual Diagnosis ** 93.959 10380 04-0832~023-TDD 105,858
Outreach, Screening,
Assessment, and Referral ** 93.959 10380 04-0921-022-OSK 160,572
Outreach, Screening,
Assessment, and Referral ** 93.959 10447 03-1235-022-OSR 60,427
Treaiment Adult ** 93.959 10380 04-0922-023-TKA 85,945
Treatment Adult ** 93.959 10380 03-1236-023-TR.A 55,705
1,094~894
Total U.S. Department of Health
and Human Services 1,094,894
TOTAL FEDERAL AWARDS $1,094,894
Denotes Major Program
17
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Expenditures of State Awards
For the Yea Ended August 31, 2002
State Grantor/
Pass Through Grantor/ Contract State
Program Title Number Expenses
Texas Department of Criminal Justice
Residential and/or Outpatient Substance
Abuse Services:
TC Supportive Outpatient 696-PD-6-7-C0021 $54,708
FR Supportive Outpatient 696-PD-6-7-C0021 4,539
59,247
State of Texas
Pass -through Texarkana - Bowie County
Family Health Center - City of Texarkana
Tobacco Awareness Project of
Northeast Texas:
Tobacco Prevention Program 49,000.
TOTAL STATE AWARDS $108,247
18
Northeast Texas Council on Alcohol and Drag Abuse, Inc.
Notes to the Schedule of Expenditures of Federal and State Awards
For the Year Ended August 3 I,' 2002
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Northeast Texas Council on Alcohol and Drug Abuse, Inc. and is presented on the accrual basis of
accounting. The information in ttfis schedule is presented in accordance with the requirement of
OMB Cimular a-133, "Audits of States, Local Governments, and Non-Profit Organizations."
Therefore, some amounts presented in this schedule may differ from amounts presented in, or used
in the preparation of, the basic financial statements.
B. M~tc, hlng Re, njfire, ment~
In accordance with the terms of the OSAR and YPI grant, the organization expended the required
matching contributions and program income for each program.
C. Revenne~ Vermin F, xpen~a~
Expenditures are not specifically attributable to the Substance Abuse Prevention Treatment Block
Grant. Therefore, expenditures are shown on the Schedule of Expenditures of Federal Awards in
amounts equal to revenue.
D. M~jnr Pro_re'am
There is only one major program, the Substance Abuse Prevention Treatment Block Grant. This
grant has one Catalog of Federal Domestic Assistance (CFDA) number, 93.959. However, tiffs
grant contains several individual programs that we tested as a group within the major program.
i9
Malnory McNeal & Company, PC
Certified Public Accountants
Mark W. Ma~nory, CPA Johnna W. McNea], CPA Members of
Amedcan Institute o! Certified Public Accountants
Ginny W. Minter, CPA Texas Society of Certified Public Accountants
Independent Auditors' Report on Compliance and on Internal
Control Over Financial Reporting Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards
Board of Directors
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
136 Grand Ave.
Paris, Texas 75460
Members of the Board of Directors:
We have audited the financial statements of Northeast Texas Council on Alcohol and Drug
Abuse, Inc. CNETCADA) as of and for the year ended August 31, 2002, and have issued our
report thereon dated June 5, 2003. We conducted our audit in accordance with U.S. generally
accepted auditing standards and the standards applicable to financial audits contained in
GOVERNMENT AUDITING STANDARDS, issued by the Comptroller General of the United
States.
Compliance '
As part of obtaining reasonable assurance about whether NETCADA's financial statements are
free of material misstatement, we performed tests of NETCADA's 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 comphance with those provisions was not an objective of our audit, and
accor, dingly we do not express such an opinion. The results of our tests disclosed instances of
noncompliance that are required to be reported under GOVERNMENT AUDITING
STANDARDS and which are described in the accompanying schedule of findings and
.questioned costs as item 02-3.
Tnternal C, nntrol Over Financial Repnrtlng
In planning and performing our audit, we considered NETC'ADA's internal control over financial
reporting ~n ' ' ' ' · ' ·
order to determine our auditing procedures for the purpose of expresstng our opinion
on the financial statements and not to provide assurance on the internal control over financial
repo[tin, g. However, we noted certain matters involving the internal control over financial
reporting and its operation that we consider to be reportable conditions. Reportable conditions
involve matters coming to our attention relating to significant deficiencies in the design or
operation of the internal control over financial reporting that, in our judgment, could adversely
affect NETCADA's ability to record, process, summarize and report financial data consistent
with the assertions of management in the financial statements. A reportable condition is
5551 Yale Boulevard Dallas, Texas 75205 Telephone: 214-692-5019 Facsimits: 214-591-7007
1747 Lamer Avenue, Suite C Paris, Texas 75460 Telephone: 903-784-$700 Facsimile: 903-784-6934
2O
described in the accompanying schedule of findings and questioned costs as items 02-1, 02~2, 02-
4, 02-5, and 02-6.
A material weakness is a condition in wb_ich the design or operation of one or more of the
intemat control components does not reduce to a relatively low level the risk that misstatements
in amounts that would be material in relation to tho financial statements being audited may occur
and not be detected within a timely period by employees in the normal course of performing their
assigned functions. Our consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control that might be reportable conditions, and
accordingly would not necessarily disclose all reportable conditions that are also considered to be
material weaknesses. However, of the reportable conditions described above, we consider items
02-1, 02-2, 02-4, and 02-6 to be material weaknesses.
This report is intended solely for the information of the 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 partie~. However, this report is a matter of public
report and its distribution is not limitedi
Par/s, Texas Certified Public Accountants
June 5, 2003
21
Malnory McNeal & Company, PC
Certified Public Accountants
Mark W. Malnory, CPA Johnna W. McNeal, CPA Members of
Amedcan Institute of Cellffied Public Accountants
Ginny W. Minter. CPA Texas Scciety of Certified Public Accountants
Independent Auditors' Report on Compliance with Requirements Applicable
to Each Major Program and Internal Control Over Compliance
in Accordance with OM~B Circular A-133
Board of Directors
Northeast Texas Council on Alcohol and Drag Abuse, Inc.
136 Grand Ave.
Paris, Texas 75460
Member of the Board of Directors:
~2nrnpl~nce
We have audited the compliance of Northeast Texas Council on Alcohol and Drug Abuse, Inc.
0'q-ETCADA) 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, 2002.
NETCADA's major federal programs are identified in the summary of auditor's results section 6f
the accompanying schedule of findings and questioned costs. Compliance with the requirements
of laws, regul_ations, contracts and grants applicable to each of its major federal programs is the
responsibility of NETCADA's management. Our responsibility is to express an opinion on
NETCADA's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards;
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//LUDITS OF STATES, LOCAL GOVERNMENTS, A_ND 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
NETCADA's compliance with those requirements and performing such other procedures as we
considerod necessary in the cimumstances. We believe tltat our audit provides a reasonable basis
for our opinion. Our audit does not provide a legal determination on NETCADA's compliance
with those requirements.
In Our opinion NETCADA complied, in ali material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended August 31,
2002.
5551 Yale Boulevard Dallas, Texas 75206 Telephone: 214-592-5019 Facsimile: 214-591-7007
1747 Lamar Avenue. Suit~ C Paris. Texas 75460 Telephone: 903.784-6700 Facsimile: 903-784-6934
22
Tnt~mM C~n~trnl C)vP~' (~nmpliRnne
The management of NETCADA 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 NETCADA'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 and to test and report on internal control over compliance in accordance
with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that noncompliance with applicable
requirements of laws, regulation, contracts and grants that would be material in relation to a
major federal program being audited may occur and not be detected within a timely period by
employees in the normal course ofperforrning their assigned functions. We noted no matters
involving the internal control over compliance and its operation that we consider to be reportable
conditions.
This report is intended solely for the information of the 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 theses specified parties. However, this report is a matter of public
record and its distribution is not limited.
Paris, Texas Certitbed Public Accountants "'
June 5, 2003
23
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Findings and Questioned Costs
For the Year Ended August 31, 2002
Program Description
Type of report on financial statements Unqualified
Reportable Conditions Finding 02-1, 02-2, 02-3, 02-4, 02-5, and 02-6
Finding 02-1, 02-2, 02-4, 02-5, and 02-6 are reportable conditions
over internal controls over financial reporting. Finding 02-3 is
a reportable condition over compliance over financial reporting.
Material Weaknesses Involving Finding 02-1, 02-2, 02-4, and 02-6
Reportable Conditions
Type of report on compliance with Unqualified
major programs
Findings and Questioned Costs for
7ederal Awards as Defined in None
Section .501(a), OMB A-133
Dollar Threshold considered between l$300,000
Type A and Type B Federal Programs
ILow Risk Auditee Statements The entity was not classified as a Iow-risk auditee in the context
t of OMB Circular A- 133.
[Major Federal Programs Substance Abuse Prevention Block Grant - CFDA # 93.959
IPass Through Entity Texas Council on Alcohol and Drug Abuse
] Schedule Reference # 02-1
[Program Name Organ/zation Wide
i Project Number N/A
i CFDA # ',I/A
i Criteria: Timely preparation of complete and accurate bank reconciliations
i is a key to maintaining adequate control over both cash
receipts and disbursements.
i Condition Found: The August 2002 bank reconciliation was not completed until
April 2003. Furthermore, two more bank accounts were not
reconciled which resulted in incorrect cash balances on the
trial balance and financial statements.
Questioned Cost~: None ~
Instances: One untimely reconciliation and Two non reconciled
Effect: .,., Not reconciling the accounts and not reconciling the accounts
timely means that errors or other problems might not be
recoguized and resolved on a timely basis.
Recommendation: We recommed that all cash accounts be reconciled each month
prior to the preparation of the monthly financial statements. A
proper reconciliation should be submitted to the treasurer monthly
for approval.
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Findin§s and Questioned Costs
For the Year Ended August 31, 2002
crO§ram Description
hedule Reference # 02-2
Program Name 3rganization Wide
Project Number ~4/A
CFDA # N/A
;ritefia: Sound financial management requires complete and accurate
financial data.
bndition Found: The financial statements printed from the accounting software
do not provide entity x~'ide totals which are a necessary tool
for analytical as well as overall entity wide £mancial reviews.
Furthermore, the equity section of the balance sheet is not
consistent with the fiscal year end of NETCADA.
mestioned Costs: Unknown
Instances: N/A
Effect: The organization must prepare manual consolidated income
statements for each department. Then, the net income (loss) does
eot match the computer generated financial statements.
Recommendation: We recommend that management strive to obtain the ability to
compile the financial statements into an "organization wide"
format.
Schedule Reference # 02-3
Program Name Organization Wide
Project Number N/A
CFDA # ,, N/A
Criteria: Deposits in a financial instituion should remain under the
amount covered by the Federal Deposit Insurance Company
(~DIC).
]ondition Found: Deposits dudmg the year w?nt over the amount of FDiC
'. coverage in a sin~e financial institution.
!uestioned Costs: None
Instances: ., ~ One
Effect: Financial institutions will not reimburse organizations for
amounts exceeding FDIC coverage.
Recommendation: We recommend that the Organization not keep a balance
greater than the covered amount in accounts at any one
financial institution.
25
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Findings and Questioned Costs
For the Year Ended Augast 31, 2002
Program Description
Schedule Reference # 02-4
Program Name Organization Wide
Project Number N/A
CFDA # N/A
:r/teria: For federal granting purposes, money must be expended
before a reimbursement can be requested from the funding
agencies. Furthermore, money for the 2002 contract must be
expended within the dates of the contract (by August 31).
Condition Found: In an effort to maximize the grants to their fullest potential,
NETCADA had $73,000 in accounts payable and $33,000
in outstanding checks at August 31, 2002.
Questioned Costs: Unknown
Instances: N/A
Effect: Grants and contracts were not closely monitored throughout
the year and a massive paying of expenses and ordering of
items occurred close to year-end. This massive number of
transactions made it difficult to reconcile grants and contracts
receivable, revenue, and expenses.
Recommendation: We recommend that NETCADA closely monitor contracts and
grants throughout the year.
Schedule Reference # 02-5
Program Nme Organization Wide
Project Number N/A
CFDA # N/A
Criteria: The minutes of the meeting of the Board of Directors should be
kept and should contain documentation of approval of
~urchases of fixed assets (a. ssets over $1,000).
Condition Found: No approval was documented in the Board of Directors
minutes for the purchases of the labtop computers.
Questioned Costs: None
Instances: Twenty-Two computers
Effect: The approval of the Board of Directors should be obtained and
documented to support the actions of management.
Recommendation: We recommend the minutes of the meeting contain approval
for purchases of fixed assets.
26
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Findings and Questioned Costs
For the Yea~ Ended August 3 I, 2002
[Program Description
l Schedule Reference # 02-6
!Program Name Organization Wide
!Project Number N/A
[CFDA # N/A
Criteria: The Organization's controller is responsible for all
accounting functions. These functions include, cash disburements
payroll, accruals, all journal entries, and the financial statement
preparation. The executive director is responsible for
reviewing and approving these transactions.
i Condition Found: During most of the year under audit, the Comptroller served
as both the Comptroller and Interim Executive Director ;thus,
creating a lack of segregation of duties.
;Questioned Costs: Unknown
i Instances: N/A
Effect: No segregation of duties existed for the approval and review
of accounting functions during the time the controller served as
interim executive director. At present, there is a separate
individual in each of the positions.
Recommendation: We recommend that a segregation of duties be maintained
constantly.
27
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Plan for Corrective Action
For the Year Ended August 31, 2002
Program Description
Schedule Reference # 02-1
Program Name Organization Wide
Project Number N/A
CFDA # N/A
Condition Found: The August 2002 bank reconciliation was not completed until
April 2003. Furthermore, two more bank accounts were not
reconciled which resulted in incorrect cash balances on the
trial balance and financial statements.
Statement of Concurrence NETCADA agrees with the auditors' finding
Contact Person Jim Arneson, Executive Director
Estimated Date of Completion July 31, 2003 ·
Corrective Action Plan Client will timely reconcile each and every checking account.
Schedule Reference # 02-2
Program Name Organization Wide
Project Number N/A
CFDA # N/A
Condition Found: The financial statements printed from the accounting sofb,vare are
not produced in a format which lends itself to departmental review
nor do they provide entity wide totals which are a necessary tool
for analytical as well as overall entity wide financial reviews.
Statement of Concurrence NETCADA agrees with the auditors' finding
Contact Person Jim Ameson, Executive Director
Estimated Da. to of Completion Unknown
Corrective Action Plan The organization will contact their Software supplier to gain
instruction on entity wide consolidated financial statements as well
as twelve-month activity versus twenty-four or thirty-six months.
Schedule Referenbe # 02-3
Program Name Organization Wide
Project Number N/A
CFDA # N/A
Condition Found: Deposits during the year went over the amount of FDIC
coverage in a single financial institution.
Statement of Concurrence NETCADA agrees with the auditors' finding
28
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Plan for Corrective Action
For the Year Ended August 31, 2002
Contact Person rim Arneson, Executive Director
Estimated Date of Completion July 31, 2003
Corrective Action Plan The organization will strive to obtain additional coverage.
Schedule Reference # 02-4
Program Name Organization Wide
Project Number N/A
CFDA # N/A
Condition Found: For federal granting purposes, money must be expended
before a reimbursement can be requested fi-om the funding
agencies. Furthermore, money for the 2002 contract must be
expended within the granting period.
Statement of Concurrence NETCADA agrees with the auditors' finding
Contact Person Jim Arneson, Executive Director
Estimated Date of Completion July 31, 2003
Corrective Action Plan Client will monitor grants and contracts throughout the year.
Schedule Reference #. 02-5
Program Name Organization Wide
Project Number N/A
CFDA # N/A
Condition Found: The minutes of/he meeting of/he Board of Directors should be
kept and should contain documentation of approval of
purchases of fixed assets (assets over $1,000).
S~atement of Concurrence NETCADA agrees with the auditors~ finding
Contact. Person Jim Arneson, Executive Director
Estimated Date of Completion July 31, 2003
Corrective Action Plan Client will obtain pr/or do.cument Board approval for purchase
': of fixed assets over $1,000 in the minutes.
Schedule Reference # )2-6
Program Name Organization Wide
Project Number N/A
CFDA # N/A
Condition Found: At year end, the controller and executive director were
conducting their assigned functions. Subsequent to year end,
the controller and executive director were one in the same
allowing for no segregation of duties.
29
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Plan for Corrective Action
For the Year Ended August 31, 2002
Statement of Concurrence NETCADA agrees with the auditors' finding
Contact Person Jim Ameson, Executive Director
Estimated Date of Completion Already resolved
Corrective Action Plan Client will obtain prior docuemnt Board approval for purchase
of fixed assets over $1,000 in the minutes.
30
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Summary Schedule of Prior Audit Findings
For the Year Ended August 31, 2002
I Schedule Reference # D 1-1
Program Name iubstance Abuse Prevention Block Grant
Project Number 14-0914-013-TRA-11 Pass Through TCADA
'ass Through South East Texas Reg/onal Planning Commission
I CFDA # 93.959
Criteria: Organization documents and records must coincide with
billing submissions to funding agencies.
Condition Found: Discrepancies were noted between client sigu-in sheets and
billings for those clients to the funding agency. Group sessions
were not always documented.
'Status: The finding was corrected during the current year.
1 Schedule Reference # 0 I-2
i Program Name Organization Wide
I Project Number N/A
iCFDA # ~/A
i Criteria: Sound f'mancial management requires complete and accurate
, financial data.
!Condition Found: The financial statements printed f~om the accounting sofb~vare are
not produced in a format which lends itself to departmental review
nor do they provide entity wide totals which are a necessary tool
for analytical as well as overall entity wide financial reviews.
, , Furthermore, the equity section of the balance sheet is not
consistent with the fiscal year end of NETCADA.
Status · The finding was not resolved. See current year finding
02-2.
Schedule ReferenCe # 01-3
!Program Name Substance Abuse Prevention Block Grant
Project Numbor 04-0913-012-OSR-11; 04-0868-012-YPI 04-0848-011-YPP;
04-0914-013-TRA-11 ;'04-0858-011-CCP; 04-0832-013-TDD
CFDA # ' 93.959
31
Northeast Texas Council on Alcohol and Drug Abuse, Inc.
Schedule of Findings and Questioned Cost
For the Year Ended August 31, 2002
Criteria: The governing body shall establish policies that comply with the
commissions' rules. These polices should be used to develop and
tmplement all necessary procedures to ensure the compliance
with contract requirements. Furtheremore, these policies and
procedures are required to be reviewed by the board of
directors on an annual basis.
Condition Found: The policy and procedures manual has not been reviewed by
the board since December 1999. However, the policies and
procedures are updated monthly during board meetings.
The executive director did not receive his annual evaluation
on a timely basis in accordance with the policies and procedures
of the organization.
Status: The finding was corrected during the current year.
32