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SHREVEPORT GREEN
AUDITED FINANCLVL STATEMENTS
DECEMBER 31,2008 AND 2007
Under provisions of state law, this report is a public document A copy of tlie report tias been submitted to the entity and other appropriate public offtciais. The report is available for public inspection at the Baton Rouge office of the Legislative Auditorand, where appropnate, at the office of the parish clerk of court.
Release Date f /go/gf
SHREVEPORT GREEN
SHREVEPORT. LOUISIANA
TABLE OF CONTENTS
AUDITED FINANCIAL STATEMENTS
Page
Independent Auditor's Report 1
Statements of Fmancial Position 2
Statements of Activities 3
Statements of Cash Flows 4
Statements of Functional Expenses 5
Notes to Fmancial Statements 6-9
OTHER REPORTS
Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 10-11
Schedule of Findings and Questioned Costs 12-14
Schedule of Prior Year Findings 15
AUDTTED FINANCIAL STATEMENTS
H E A R D M C E L R O Y & VESTAL
LLP CERTiFrED PUBLIC ACCOUNTANTS
333 TEXAS STREET
15TH Fr.oon SHREVEPORT, LA 7 1 1 0 1
318 429-1525 318 429-2070 FAX-POST OKPICE Box 1607
SHREVEPORT, LA
71165-1607
PARTNERS SPENCER BEKNARD, JR., Q'A H.Q. GAHAGAK, JR., CPA, APC GEHAI.D W. HEIXSCOCK, JR., CPA, APC TIM B . NIELSEN, CPA, APC
JOHN W. DEAN, CPA, APC MARK D . ELOKCDGE, CPA ROBERT L. DEAN, CPA STEPHEN W. CRAIG, CPA
ROY E . PRESTWOOii, CPA
A. D. JOHNSON, JR., CPA
BENJAMIN C. WOODS, CPA/AIJV, CVA
ALICH V. FRAZIER, CPA
MELISSA D . MITCHAM. CPA, CFP
O F COUNSEL
GiLUERT R. SHANLEV, JR., CPA
C. CODY WHITE, J I . , CPA, AI'C
RON W . STEWART, CPA, APC
August 7. 2009
The Board of Directors Shrcveport Green Shreveport, Lx)uisiana
Independent Auditor's Report
We have audited the accompanying statements of financial position of Shreveport Green (a nonprofit organization) as of December 31, 2008 and 2007, and the related statements of activities, cash flows, and functional expenses for the years then ended. These financial statements arc the responsibility of the management of Shreveport Green. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial 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 audits provide a reasonable basis for our opinion.
In our opinion, the fmancial statements referred lo above present fairly, in all material respects, the financial position of Shreveport Green as of December 31, 2008 and 2007, and the changes in its net assets and its cash flows for the years 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 August 7, 2009. on our consideration of Shreveport Green's intemal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
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SHREVEPORT GREEN
STATEMENTS OF FINANCIAL POSITION
DECEMBER 31. 2008 AND 2007
A S S E T S 2008 2007
Current assets: Cash and cash equivalents-Note 9 Grants receivable Contributions receivable Prepaid insurance
Total current assets
Fixed assets: Building Office furniture, equipment and vehicles Equipment-Neighborhood Program Less-accumulated depreciation
Book value of fixed assets
Total assets
LIABILITIES AND NET ASSETS
Current liabilities: Accounts payable and accrued expenses Notes payable-Note 10
Total current liabilities
Net assets-unrestricted
Total liabilities and net assets
250,329
75,391 1,100 8.519
335,339
202.506 159,476 10,418
(199.332) 173.068
508.4Q7
176,774 92,497 31,692 3,727
304,690
202,506 156.076 10,418
(179,546) 189,454
4?4,144
24,932
24,932
483,475
508.407
44,712 14.799 59,511
434.633
494 J 44
The accompanying notes are an integral part of the fmancial statements.
SHREVEPORT GREEN
STATEMENTS OF ACTIVmES
FOR THE YEARS ENDED DECEMBER 31. 2008 AND 2007
201,814 260,682
19,285 183,982 73,712 48,075
4,530 162.054
-3.600
205,696 51,369 10,000
188,432 173,363 44,030
3,143 251,870
16,050 3,674
2008 2007
Changes in Unrestricted Net Assets: Public support and other revenue:
Public support: City of Shreveport-Note 3 Contract for Services-Note 4 Grants-Neighborhood Program-Notes 3 and 5 Grants-Louisiana Serve Conmiission-Note 5 Other public support Memberships and contributions Tree Legacy program In-kind donations-Note 5 Fundraising income Other community support-Note 6
Total public support 957,734 947,627
Other revenue: Interest income 3,035 7,943 Miscellaneous income 17.786 21.276
Total other revenue 20.821 29.219
Total public support and other revenue 978,555 976,846
Expenses: Managen^ent and general Program services
Total expenses
Change in net assets
Net assets-beginning
Net assets-ending
172,984 756.729 929.713
48,842
434.633
483.475
222,919 778,111
1.001.030
(24,184)
458.817
434.633
The accompanying notes are an integral part of the financial statements.
SHREVEPORT GREEN
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31. 2008 AND 2007
2008 2007
Cash flows from operating activities: Change in net assets 48,842 (24,184) Adjustments to reconcile change in net assets to net
cash provided (used) by operating activities: Depreciation Noncash contributions Noncash expenses (Increase) decrease in:
Grants receivable Contributions receivable Prepaid insurance
Increase (decrease) in: Accounts payable
Net cash provided (used) by operating activities
Cash flows from financing activities: Payments on bank loan
Net cash (used) by financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Interest paid
19.786 (162.054) 158,654
17,106 30,592 (4,792)
(19.780) 88,354
(14,799)
(14,799^
73.555
176,774
250.329
45Q
20,246 (251,870) 228,625
6,963 (24.362)
(160)
29.317 (15.425)
(14.400) (14.400)
(29,825)
206,599
176.774
1.8W
The accompanying notes are an integral part of the fmancial statements.
SHREVEPORT GREEN
STATEMENTS OF FUNCTIONAL EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 2008 AM) 2007
2008 Program Services
Accounting and legal Automobile Awards Awards luncheon Building and equipment CARE City clean-up Clean business program Depreciation Dues and subscriptions Education-schools Employee benefits-Note 8 Entertainment and meetings Fundraising Gifts/donations/contributions Grants-specific programs Insurance Interest Miscellaneous Neighborhood improvement Office expense Postage Printing Professional training Public relations Recycling Rent Repairs/maintenance/security Salaries Supplies Support costs Taxes Telephone Travel Trees Utilities
Total expenses
Management and
General Services
7,193
3,405 9,563
19.786
2,346
1,413
14,601 450
10,100
ShrevCorps Program
1.000 3.767
2,719
3,531
13.636 20,926
8.893 76.344
609 2,533 3,200 -
1,574 80.974
870 -
6,266 3,823 -
4.887
172.984
-185,018 8,278 -
272,643 1,276 2,815
21.538 987
3,793
.
627,773
Neighborhood Program
15,400 397
15 20
65
39,664 15
3,034
711
59.321
Other Specific
Programs-Note7
1,800
15
2,901 674
1,658 412 537 400
11,563 215
3,234
5,792 3.650 1.868 6,374
381
21.899
1,675 168
3.210 1.209
Total Expenses
9,993 3,767
15 3.405 9.563 2,719 2.901
674 19.786 1,658
412 6.414
400 1,413
40,599 36,139
450 22.242 76.364 5,792 3,650 1,868 7,048 2,533
188.599 8,278 1,574
415,180 2,161 2,815
32,513 4.978 7.714 1,209 4.887
69.635 929.713
The accompanying notes are an integral part of the fmancial statements.
Management and
General Services
4.787 --
2,056 11,130
---
20,246 1,330
35 2,346
992 16,650
163 -
11.039 1,869
19,620 -
5,508 -385
5,658 2.329 3,300
-2,742
89.877 1,995
-7.013 3.650
--
8.199
222.?!?.
ShrevCorps Program
1,000 1,539 1,100
--
3,283 ----
97 2.901
---
10,537 25.114
-24,323
166.844 ---
2,605 -
22,074 7.583
-270,097
2.307 8.955
20.632 1.138 3.258
-.
575.382
2007 Program Services
Neighborhood Program
1.800 --------------
25,223 1.200
---809 --595 ---255
39,664 --
3.034 -
1,365 --
_?3.945
Other Specific Programs-
Note 7
2,000 --
2.000 --
4.608 389 --
8,431 ----
66,593 --
3,510 --
2,543 3,289 5,040
-531 --
21.486 --
1,644 -
2,791 3,924
_
J28.77?,
Total Expenses
9,587 1,539 1,100 4.056
11,130 3.283 4,608
389 20.246
1,330 8,563 5,247
992 16.650
163 102.353 37,353
1,869 47,453
166,844 6,317 2,543 3,674
13.898 2,329
25,905 7,583 2.997
421.124 4,302 8,955
32.323 4.788 7,414 3,924 8,199
1.M1.03Q
SHREVEPORT GREEN
NOTES TO FINANCIAL STATEMENTS
DECrEMBER 31. 2008 AND 2007
1. Nature of Business Shreveport Green is a nonprofit organization whose purpose is the promotion of the public interest in the irr^rovement of the environment of the City of Shreveport. through the promotion of recycling, coordination of litter control programs and the promotion of beautification through landscaping.
2. Summary of Significant Accounting Policies
(a) Income taxes Shreveport Green qualifies as a tax-exempt organization under Section 501 (cX3) of the Intemal Revenue Code, and, therefore, has no provision for income taxes. The Organization elected in 2008 to defer until 2009 the provisions of FASB Interpretation 48, '̂Accounting for Uncertainty in Income Taxes." The Organization has not adopted any
uncertain tax positions with respect to any amounts reported in its 2008 and 2007 fmancial statements.
(b) Depreciation Fixed assets are stated at cost, less accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets.
(c) Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
(d) Donated materials Donated materials are recorded in the financial statements at their estimated fair values at the date of receipt. A number of volunteers have donated their tinoe to assist in the operations and improvements of the organization. In accordance widi requirements of Statement of Financial Accounting Standards No. 116. no amounts have been reflected in the financial statements for those services.
(e) Financial statement presentation Shreveport Green adopted Statements of Financial Accounting Standards No. 116, "Accounting for Contributions Received and Contributions Made." and No. 117, "Financial Statements for Not-for-Profit (Drganizations," which establish standards of basic accounting and reporting for not-for-profit organizations.
Under these provisions, net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the organization and changes therein are classified and reported as follows:
Unrestricted net assets - Net assets that are not subject to donor-imposed stipulations. Conuibutions whose restrictions are met in the same period as received are recorded as unrestricted.
2. Summary of Significant Accounting Policies (Continued)
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.
Permanently restricted net assets - Net assets subject to donor-imposed stipulations that they be maintained permanentiy by Shreveport Green. Generally, the donors of these assets permit the organization to use all or part of the income earned on related investments for general or specific purposes.
As of December 31, 2008 and 2007, there were no temporarily or permanentiy restricted net assets.
Contractual grant revenue is reported as unrestricted support due to the restrictions placed on those funds being met in the same reporting period as the revenue is earned.
(f) Cash and cash equivalents For purposes of the statement of cash flows, Shreveport Green considers all highly liquid investments purchased with original maturities of three months or less to be cash and cash equivalents.
(g) Promises to give Contributions are recognized when the donor makes a promise to give to the organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the contributions arc recognized. All other donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restriction. When a resuiction expires, temporarily restricted net assets are reclassified to unrestricted net assets.
(h) Estimates The preparation of financial staten>ents in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
3. Cooperative Endeavor Agreement Shreveport Green received $221,099 and $199,280 in 2008 and 2007, respectively, from the City of Shrcveport for the purpose of improving the appearance of the City tiirough education and programs to facilitate clean-up. beautification and recycling efforts.
4. Contracts for Services Shreveport Green received $27,375 and $27,169 in 2008 and 2007. respectively, from the Caddo Parish Commission to perform community related projects to benefit the parish of Caddo. The City of Shreveport paid $25.0(X) and $24,200 in 2008 and 2(X)7. respectively, for clean-up and maintenance of certain highway intersections. During 2008, the City of Shreveport also paid $197,907 to Shreveport Green for the assembly and distribution of over 65,CXX) rollout carts for the cities curbside recycling program. Shreveport Green also received an additional $10.0(X) in 2008 for waste collection services.
Grants Received Shrcveport Green received $183,982 and $188,432 in 2008 and 2007, respectively, from the Louisiana Serve Commission for the continuation of a youth and conservation corps program called ShrevCorps. Shreveport Green received in-kind contributions of $162,054 and $251,870 in 2008 and 2007, respectively.
Other Community Support Shreveport Crreen received contributions from the general public through community wide clean-up. recycling and beautification efforts in 2008 and 2(X)7:
2008 2007
Telephone book recycling 3.600 3.674
Other Specific Programs Shreveport Green conducted specific city beautification, litter control and tree planting projects during the years ended December 31, 2(K)8 and 2007. Expenses for these programs are as follows:
2008 2007
Anti-litter materials and supplies Arbor Day Community garden Green Christmas Greenhouse Growing Up Green Camp Household Hazardhouse Waste School Lab Hurricane recovery Landlord training Mayor's MLK Blast Movies and Moonbeams National Global Youth Service Day Neighborhood improvement Neighborwoods Plantings Plant sale Ramp Up Louisiana Scholarships Telephone Book Recycling Think Green Volunteer appreciation and recruitment Other
Employees' Retirement Plan Shreveport Green established a simple IRA plan as of March 2(KX) for its employees. An employee is eligible to participate after one year of employment, earns a minimum salary of $5,000 and is at least 21 years old. Participation is voluntary and the employee may contribute up to $10,(XX) per year. Shreveport Green matches the employee's contribution up to 3% of his or her annual compensation or $6,000, whichever is less. The contribution charged to expense for the years ended December 31, 2008 and 2007 was $6,414 and $5,247, respectively.
12,267 1,566 1,733 1.940 5,919 6,345 3,708
--
1.543 ----
2,443 1.379 2,933
---
3.133 24,726 69.635
20.551 -
25.000 ----
9,416 3,441 1,375
790 5,436 5.981
411 --
6,094 3,000 2.000
10.000 -
35,284 128,779
9. Concentration of Risk At December 31, 2008 and 2007, Shreveport Green had cash deposits in excess of federally insured limits of approximately $-0- and $41,348, respectively.
10, Bank Note Payable At December 31. 2002, Shreveport Green had a bank note payable totaling $103,300 secured by a mortgage on the office building. The note was payable on demand, or if no demand was made then monthly payments were due of $1,506 through May 25, 2016. The interest rate varied 2.24 percentage points over the United States Dollar Swap Rate with a rate of 7,76% as of December 31, 2002.
Effective April 2. 2003. the note was refinanced at the Wall Street Journal Prime Rate (7.25% at December 31,2(X)7). The new note was also payable on demand and monthly payments were due of $1,2(X) plus interest. The note was paid in full during October 2008.
OTHER REPORTS
H E A R D M C E L R O Y &c V E S T A L
LLP CERTIFIED PUBUC ACCOUNTANTS
333 TEXAS STREET
1 5TH FLOOR
SHREVEPORT, LA 71101
318 429-1525 318 429-2070 FAX POST OFFICE BOX 1 6 0 7
SHREVEPORT, LA
71165-1607
PARTNERS SPK.\CKR BEKNAHD, JR.. CI'A ?LQ. GAHAGAN, JR., CPA, APC GERALD W. HEDGCOCK, JR., O'A, APC TIM B . NIELSEN, CPA, APC JOHN W . DFJ\N, CPA, APC MARK D . ELDREDGE, CPA ROBEHT L. DEAN, CPA STEPHEN W. CRAKJ. CPA
ROY E. PRESTWOOD, CPA
A. D. JOHNSON, JR., CPA
BENJAMIN C . WOODS, CPA/AUV, CVA
AucE V. FRAZIER, CPA MELL'MA D . MITCHAM, CPA, CFP
OH COUNSEL
GILBERT R. SHANLIH, JR., CPA
C. CODY WHrrE, JR., CPA, APC RON W . STEWART, Q'A, ,\PC
August 7, 2009
The Board of Directors Shreveport Green Shreveport, Louisiana
Report on Intemal Control Over Financial Reportine and on Compiiapce and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
We have audited the financial statements of Shreveport Green as of and for the year ended December 31, 2008, and have issued our report thereon dated August 7, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained in Government Auditing Staruiards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Shreveport Green's intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the fmancial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over fmancial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization*s intemal control over financial reporting.
Our consideration of intemal control over fmancial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in intemal 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 performing their assigned functions, (o prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, hat adversely affects the entity's ability to initiate, authorize, record, process or report fmancial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity*s financial statements that is more than inconsequential will not be prevented or detected by the entity*s intemal control. We consider deficiencies 2008-01 through 2008-02 described in the accompanying schedule of findings and responses to be significant deficiencies in intemal control over financial reporting.
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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 will not be prevented or detected by the entity's intemal control.
Our consideration of 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 intemal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that item 2008-01 of the significant deficiencies described above is a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Shreveport Green'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 inaterial 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 two instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and responses as items 2008-03 and 2008-04.
This report is intended solely for the infonnation and use of the Board of Directors and Management of Shreveport Green and is not intended to be and should not be used by anyone other than these specified parties.
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SHREVEPORT GREEN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2008
L Summary of Audit Results
1. The auditor's report expresses an unqualified opinion on the financial statements of Shreveport Green.
2. Two significant deficiencies, one of which is a material weakness, are reported.
3. Two instances of noncompliance were disclosed during the audit.
4. Shreveport Green is not subject to a Federal Single audit for 2008.
U. Findings - Fmancial Statement Audit
2008-01 Material Weakness
Condition: As is common in small operations, management has chosen to engage the auditor to propose certain year-end adjusting journal entries and to prepare the Organization's annual financial statements. Consistent with this decision, intemal controls over the preparation of year-end adjusting entries and annual fmancial statements, complete with notes, in accordance with generally accepted accounting principles have not been established, nor has management demonstrated an ability to perform these functions in house.
Criteria: Pursuant to the requirements of Statement on Auditing Standards No. 112, "Communicating Intemal Control Related Matters Identified in an Audit," this condition represents a control deficiency that is also considered to be a material weakness in intemal controls.
Effect: The Organization does not have the resources (i.e. intemal controls and expertise) to prepare the annual financial statements, complete with notes and free of material misstatement, m accoidance with generally acceptable accounting principles. The auditor prepared the annual financial statements.
Recommendation: Whether or not it would be cost effective to cure a control deficiency is not a factor in applying SAS 112's reporting requirements. Because prudent management requires that the potential benefit from an intemal control must exceed its cost, it may not be practical to correct all deficiencies an auditor reports under SAS 112. In this case, we do not believe that curing the material weakness described would be cost effective or practical and accordingly, do not believe any corrective action is necessary.
Management Response: As noted above, no recommendation is made and no corrective action is necessary.
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2008-02 Significant Deficiency
Condition: There was a lack of reconciliation of certain grant revenues and expenses on a timely basis during the fiscal year. This created a delay in proper rqwrting to the granting authority and improper recording of the amounts in the financial statements.
Criteria: Reconciliation of grant funds should be performed monthly so that funds are accounted for properly and so that reporting guidelines of the grantor are adhered to.
Effect: Client personnel and auditor time was necessary to review and adjust the 2008 books to properly record grant funds, which slowed the audit process.
Recommendation: We recommend that all grant revenue and expense records be monitored and reconciled on a monthly basis so that proper accounting and reporting may take place and so that any unused grant funds are returned to the grantor as required.
Management Response: We agree with the recommendation and will perform these functions on a timely basis in the future.
2008-03 Noncompliance
Condition: The engagement was not completed and transmitted to the Louisiana Legislative Auditor's office by June 30, 2009.
Criteria: Louisiana Revised Statute 24:513 and the Louisiana Governmental Audit Guide require all engagements to be completed and transmitted to the legislative auditor within six months of the close of the entity's fiscal year.
Effect: Client personnel and auditor time was necessary to review and adjust the 2008 due to conditions detailed in 2008-01.
Recommendation: We recommend that all grant revenue and expense records be monitored and reconciled on a monthly basis so that tinwly reporting may take place.
Management Response: We agree with the recommendation and will ensure that reports are filed timely in the future.
2008-04 Noncompliance
Condition: The client did not file proper reports with or retum unused funds to the granting authority by the applicable deadline. The significant deficiency explained at 2008-02 caused these delays.
The client had retained funds that were required to be returned to the grantor. Upon notification, the grantor agreed to allow the client to keep the funds and expend them for the original purpose of the grant. The grantor also extended the reporting deadline.
Criteria: The requirements of the grant agreement were violated in regards to reporting deadlines and the retum of unused funds.
Effect: Client personnel and auditor time was necessary to review and adjust the 2008 books to properly record grant funds as well as communicate with the granting authority, all of which slowed the audit process.
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Recommendation: We recommend that all grant revenue and expense records be monitored and reconciled on a monthly basis so that proper accounting and reporting may take place and so that any unused grant funds are returned to the grantor by the deadlines outlined in the grant agreement.
Management Response: We agree with the recommendation and will perform these functions on a timely basis in the future.
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SHREVEPORT GREEN
SCHEDULE OF PRIOR YEAR FINDINGS
FOR THE YEAR ENDED DECEMBER 31. 2008
No matters were reported for the prior year.
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