Food Bank of Covington, LA, Inc.app1.lla.state.la.us/PublicReports.nsf/A222262FCE...FOOD BANK OF...

FOOD BANK OF COVINGTON, LA, INC.

FINANCIAL REPORT

FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014

A k\CR\ C A R R RIGGS & INGRAM

CPAs and Advisors

CRIcpa.com I blog.cricpa.com

FOOD BANK OF COVINGTON, LA, INC. TABLE OF CONTENTS DECEMBER 31, 2015

REPORT

Independent Auditors'Report 1

FINANCIAL STATEMENTS

Statements of Financial Position 3

Statements of Activities 4

Statements of Revenues, Other Support and Expenses by Program and Supporting Services 6

Statements of Cash Flows 8

Notes to Financial Statements 9

SUPPLEMENTARY INFORMATION

Schedule of Compensation, Benefits and Other Payments to Agency Flead 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

Schedule of Current Year Findings and Questioned Costs 18

Summary Schedule of Prior Year Findings 19

Report

A cm Carr, Riggs & Ingram, LLC C A R R 4330 Dumaine Street RIGGS & New Orleans, Louisiana 70119 INGRAM

CPAs and Advisors (504) 833-2436 (504) 484-0807 (fax) www.CRlcpa.com

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of Food Bank of Covington, LA, Inc. Covington, Louisiana

We have audited the accompanying financial statements of Food Bank of Covington, LA, Inc. (the Organization), a Louisiana nonprofit corporation, which comprises the statements of financial position as of December 31, 2015 and 2014, and the related statements of activities and change in net assets; revenues, other support, and expenses by program and supporting services; and cash flows for the years then ended, and the related notes to financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

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. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Organization's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Food Bank of Covington, LA, Inc. as of December 31, 2015 and 2014, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The Schedule of Compensation, Benefits, and Other Payments to Agency Head on page 14 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of compensation, benefits and other payments to agency head is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

(jiM^ f U.C.

March 18, 2016

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Financial Statements

FOOD BANK OF COVINGTON, LA, INC

STATEMENTS OF FINANCIAL POSITION

As of December 31, 2015 2014

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Accounts receivable

Certificates of deposit

Inventory

Other assets

278,535 $ 17,168

1,279,510 95,039 112,913

275,525

1,154,062 65,868 107,749

Total Current Assets 1,783,165 1,603,204

PROPERTY AND EQUIPMENT

Building

Dental equipment

Vehicles Equipment

449,085 111,742

9,402 74,127

442,358 111,742

9,402 53,767

Total Property and Equipment 644,356 617,269 Less: accumulated depreciation (289,005) (271,135)

Net Property and Equipment 355,351 346,134

LAND 141,651 141,651

TOTAL ASSETS S 2,280,167 $ 2,090,989

CURRENT LIABILITIES

Accrued expenses

LIABILITIES AND NET ASSETS

18,402 $ 18,805

Total Current Liabilities 18,402 18,805

NET ASSETS

Unrestricted

Unrestricted - Board designated

Operating reserves

Building reserves

982,255

873,251 406,259

2,072,184

Total Net Assets 2,261,765 2,072,184

TOTAL LIABILITIES AND NET ASSETS S 2,280,167 $ 2,090,989

The accompanying notes are an integral part of these financial statements.

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STATEMENT OF ACTIVITIES

For the Year Ended December 31, 2015 Temporarily

Unrestricted Restricted Total REVENUES AND OTHER SUPPORT

Food Bank Food bank in-kind donations $ 736,390 s s 736,390 Food Bank donations 349,479 - 349,479 Food Bank grants 201,342 - 201,342

Thrift Store Thrift Store income 185,370 - 185,370 Thrift Store donations 2,897 - 2,897

Dental Clinic Dental Clinic income 250,327 - 250,327 Dental Clinic grants 82,368 - 82,368 Dental Clinic donations 8,601 - 8,601 Dental Clinic in-kind donations 8,442 - 8,442

Emergency Assistance income 6,180 - 6,180 Fundraising income 161,799 - 161,799 Other income 13,648 - 13,648

Total Revenues and Other Support 2,006,843 . 2,006,843

EXPENSES In-kind donations 724,332 - 724,332 Salaries 465,909 - 465,909 Food 256,620 - 256,620 Supplies 65,871 - 65,871 Operating expenses 51,871 - 51,871 Insurance 51,491 - 51,491 Payroll taxes 40,809 - 40,809 Maintenance 33,469 - 33,469 Utilities 35,421 - 35,421 Fundraising 28,624 - 28,624 Depreciation 20,784 - 20,784 Professional fees 16,207 - 16,207 Assistance 12,777 - 12,777 Miscellaneous 8,633 - 8,633 Loss on disposal of equipment 2,526 - 2,526 Advertising 1,918 - 1,918

Total Expenses 1,817,262 . 1,817,262

CHANGE IN NET ASSETS 189,581 - 189,581

NET ASSETS - Beginning of year 2,072,184 - 2,072,184

NET ASSETS - End of year S 2,261,765 $ s 2,261,765


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For the Year Ended December 31,


STATEMENT OF ACTIVITIES

2014

Unrestricted Temporarily Restricted Total

REVENUES AND OTHER SUPPORT Food Bank

Food bank in-kind donations $ 684,532 s S 684,532 Food Bank donations 383,884 - 383,884 Food Bank grants 154,048 - 154,048

Thrift Store Thrift Store income 180,017 - 180,017 Thrift Store donations 2,358 - 2,358

Dental Clinic Dental Clinic income 209,566 - 209,566 Dental Clinic grants 109,470 - 109,470 Dental Clinic donations 7,200 - 7,200 Dental Clinic in-kind donations 10,653 - 10,653

Emergency Assistance income 6,740 - 6,740 Fundraising income 164,357 - 164,357 Other income 10,928 - 10,928

Total Revenues and Other Support 1,923,753 _ 1,923,753

EXPENSES In-kind donations 695,185 695,185 Salaries 479,181 479,181 Food 212,636 212,636 Supplies 53,540 53,540 Operating expenses 58,786 58,786 Insurance 46,247 46,247 Payroll taxes 40,065 40,065 Maintenance 12,867 12,867 Utilities 29,165 29,165 Fundraising 32,003 32,003 Depreciation 32,730 32,730 Professional fees 15,117 15,117 Assistance 15,039 15,039 Building renovations 8,458 8,458 Miscellaneous 5,708 5,708 Loss on disposal of equipment 3,107 3,107 Facilities and equipment 1,054 1,054 Advertising 895 895

Total Expenses 1,741,783 1,741,783

CHANGE IN NET ASSETS 181,970 181,970

NET ASSETS - Beginning of year 1,890,214 1,890,214

NET ASSETS - End of year $ 2,072,184 S S 2,072,184


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FOOD BANK OF COVINGTION, LA, INC.

STATEMENTS OF REVENUES, OTHER SUPPORT AND

EXPENSES BY PROGRAM AND SUPPORTING SERVICES

For the Year Ended December 31, 2015 Program Services Supporting Services

Food Thrift Dental Emergency Program General and Support Bank Store Clinic Assistance Total Administrative Fundraising Total Total

REVENUES AND OTHER SUPPORT Donations $ 349,479 $ 2,897 $ 8,601 $ 6,180 $ 367,157 $ - $ $ S 367,157 Grants 201,342 - 82,368 - 283,710 - - - 283,710 Income - 185,370 250,327 - 435,697 - - - 435,697 Fundraising - - - - - - 161,799 161,799 161,799 In-kind donations 736,390 - 8,442 - 744,832 - - - 744,832 Other income - - - - - 13,648 - 13,648 13,648

Total Revenues and Other Support 1,287,211 188,267 349,738 6,180 1,831,396 13,648 161,799 175,447 2,006,843

EXPENSES In-kind donations 715,890 - 8,442 - 724,332 - - - 724,332 Salaries 207,934 74,979 182,996 - 465,909 - - - 465,909 Food 256,620 - - - 256,620 - - - 256,620 Supplies 7,113 2,531 56,227 - 65,871 - - - 65,871 Operating expenses 25,926 18,091 6,885 - 50,902 969 - 969 51,871 Insurance 28,406 3,929 19,156 - 51,491 - - - 51,491 Payroll taxes 18,355 6,863 15,591 - 40,809 - - - 40,809 Maintenance 11,667 1,656 20,146 - 33,469 - - - 33,469 Utilities 15,560 7,380 12,481 - 35,421 - - - 35,421 Fundraising - - - - - - 28,624 28,624 28,624 Depreciation - - - - - 20,784 - 20,784 20,784 Professional fees - - - - - 16,207 - 16,207 16,207 Assistance - - - 12,777 12,777 - - - 12,777 Miscellaneous 4,662 1,596 2,375 - 8,633 - - - 8,633 Loss on disposal of equipment - - - - - 2,526 - 2,526 2,526 Advertising 926 992 - - 1,918 - - - 1,918

Total Expenses 1,293,059 118,017 324,299 12,777 1,748,152 40,486 28,624 69,110 1,817,262

CHANGE IN NET ASSETS $ (5,848) $ 70,250 $ 25,439 $ (6,597) $ 83,244 $ (26,838) $ 133,175 $ 106,337 S 189,581

The accompanying notes are an integral part of these financial statements. -6-

FOOD BANK OF COVINGTION, LA, INC.

STATEMENTS OF REVENUES, OTHER SUPPORT AND

EXPENSES BY PROGRAM AND SUPPORTING SERVICES

For the Year Ended December 31, 2014 Program Services Supporting Services

Food Thrift Dentai Emergency Program Generai and Support Bank Store Ciinic Assistance Totai Administrative Fundraising Totai Total

REVENUES AND OTHER SUPPORT Donations $ 383,884 $ 2,358 $ 7,200 $ 6,740 $ 400,182 $ $ $ $ 400,182

Grants 154,048 - 109,470 - 263,518 - - - 263,518

Income - 180,017 209,566 - 389,583 - - - 389,583 Fundraising - - - - - - 164,357 164,357 164,357

In-kind donations 684,532 - 10,653 - 695,185 - - - 695,185

Other income - - - - - 10,928 - 10,928 10,928

Total Revenues and Other Support 1,222,464 182,375 336,889 6,740 1,748,468 10,928 164,357 175,285 1,923,753

EXPENSES In-kind donations 684,532 - 10,653 - 695,185 - - - 695,185

Salaries 219,346 87,442 172,393 - 479,181 - - - 479,181

Food 212,636 - - - 212,636 - - - 212,636

Supplies 11,107 2,549 39,884 - 53,540 - - - 53,540

Operating expenses 25,461 19,550 12,104 - 57,115 1,671 - 1,671 58,786

Insurance 25,235 3,451 17,561 - 46,247 - - - 46,247

Payroll taxes 16,932 8,060 15,073 - 40,065 - - - 40,065

Maintenance 12,867 - - - 12,867 - - - 12,867

Utilities 13,044 6,642 9,479 - 29,165 - - - 29,165

Fundraising - - - - - - 32,003 32,003 32,003

Depreciation - - - - - 32,730 - 32,730 32,730

Professional fees - - - - - 15,117 - 15,117 15,117

Assistance - - - 15,039 15,039 - - - 15,039

Building renovations - - - - - 8,458 - 8,458 8,458

Miscellaneous 4,105 342 999 262 5,708 - - - 5,708

Loss on disposal of equipment - - - - - 3,107 - 3,107 3,107

Facilities and equipment 1,054 - - - 1,054 - - - 1,054

Advertising 895 - - - 895 - - - 895

Total Expenses 1,227,214 128,036 278,146 15,301 1,648,697 61,083 32,003 93,086 1,741,783

CHANGE IN NET ASSETS $ (4,750) $ 54,339 $ 58,743 $ (8,561) $ 99,771 $ (50,155) $ 132,354 $ 82,199 $ 181,970


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FOOD BANK OF COVINGTON, LA, INC.

STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2015 2014

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets Adjustments to reconcile change in net assets to

$ 189,581 $ 181,970

net cash provided by operating activities: Depreciation 20,784 32,730 Loss on disposal of equipment 2,526 3,107

Donations of equipment (20,500) -Change in operating assets and liabilities:

Accounts receivable (17,168) -Inventory (29,171) (26,681) Other assets (5,163) (6,991) Accounts payable - (1,258)

Accrued expenses (403) 2,655

Net Cash Provided By Operating Activities 140,486 185,532

CASH FLOWS FROM INVESTING ACTIVITIES Purchases of certificates of deposit (125,448) (79,252)

Purchases of property and equipment (12,028) (38,645)

Net Cash Used In Investing Activities (137,476) (117,897)

NET CHANGE IN CASH AND CASH EQUIVALENTS 3,010 67,635

CASH AND CASH EQUIVALENTS - Beginning of year 275,525 207,890

CASH AND CASH EQUIVALENTS - End of year $ 278,535 S 275,525

The accompanying notes ore on integral part of these financial statements.

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FOOD BANK OF COVINGTON, LA, INC. NOTES TO FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Organization

Food Bank of Covington, LA, Inc. {the Organization) is a nonprofit organization located in Covington, Louisiana, whose purpose is to identify and address the needs of the poor in the parishes of St. Tammany, Tangipahoa, and Washington. The Organization includes the following programs:

1. The Food Bank provides perishable and non-perishable food items to multi-member households three times a week and for the holidays.

2. The Thrift Store offers a variety of clothing and household items at reduced prices. 3. The Dental Clinic treats the dental needs of the uninsured populations in the area at a

discount. 4. The Emergency Assistance helps those individuals who are facing financial difficulties, due

to unforeseen circumstances, with such expenses as utilities, rent, or pharmacy bills.

Basis of Presentation

Financial statement presentation follows the recommendations of the Financial Accounting Standards Board (FASB). Under FASB, 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.

a) Unrestricted net assets represent the portion of net assets that are not subject to donor restrictions.

b) Temporarily restricted net assets arise from donations that are restricted by donors for specific purposes or time periods. Donations 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 donations are recognized. All other donor restricted donations are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. There were no temporarily restricted net assets as of December 31, 2015 and 2014.

c) Permanently restricted net assets are donor-imposed assets that stipulate that the donation be maintained permanently but permits the use of all or part of the income derived. There were no permanently restricted net assets as of December 31, 2015 and 2014.

All donations are considered available for unrestricted use, unless specifically restricted by donors. All expenses are reported as changes in unrestricted net assets.

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Organization's management considers all unrestricted highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents.

Statements of Revenues, Other Support and Expenses by Program and Supporting Services

The revenues and costs of providing the various programs and other activities have been summarized on a functional basis in the statements of revenues, other support and expenses by program and supporting services. Accordingly, certain revenues and costs have been allocated among the programs and supporting services benefited based on actual amounts or management's best estimate. Restricted revenues and other support received during the year whose restriction is met within the year are recorded as unrestricted revenues and other support on the statements of activities and changes in net assets.

Property and Equipment

Property and equipment are recorded at cost. Depreciation is provided on the straight-line method over the estimated useful lives as follows:

Building 39 years Dental equipment 5 years Vehicles 5 years Equipment 7 years

Additions and betterments of $5,000 or more are capitalized, while maintenance and repairs that do not extend the useful lives of the respective assets are expensed in the current year. Depreciation expense for the years ended December 31, 2015 and 2014 was $20,784 and $32,730, respectively.

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Donated Assets and Services

The Organization records noncash donations, except for food donations (see inventory policy below), as donations, at the estimated fair value at the date of donation. The Organization recognizes donated services, if significant in amount, which create or enhance non-financial assets or that require specialized skills, which are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. In addition, a substantial number of volunteers have donated significant amounts of their time in the Organization's program services. However, these volunteer services do not meet all of the applicable requirements of financial accounting standards necessary to be recorded in the financial statements. The Organization recognizes donated assets at fair market value at the date of donation. In-kind donations consisting of both material and services for the years ended December 31, 2015 and 2014 was $744,832 and $695,185, respectively.

Inventory

Inventory is comprised of donated food and purchased food. Donated food inventory, including food received, distributed and undistributed, is valued using the estimated fair value as determined by management. The average value used for the years ended December 31, 2015 and 2014 was $0.90 per pound.

Purchased food inventory is recorded at cost.

Donated commodities are considered by management to be immaterial and, thus, are not included in the accompanying financial statements.

Other Assets

Other assets consist of cash surrender value of life insurance and prepaid insurance. Cash surrender value of life insurance of $102,994 and $99,267 at December 31, 2015 and 2014, respectively, is carried at fair value. The Organization is the owner and beneficiary on the life insurance, which covers one of its former Executive Directors. The remaining $9,919 and $8,482 at December 31, 2015 and 2014, respectively, of other assets is prepaid insurance.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect from outstanding balances. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. At December 31 2015, the Company considered accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts has been established. At December 31, 2014, there was no accounts receivable.

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Thrift Store Inventory

Financial accounting standards require that donations be recognized as inventory when received and carried at fair value. Management believes there is a major uncertainty about the existence of value for used clothing and home goods, which indicates that an item received or given should not be recognized. Financial accounting standards state that "fair value should be regarded as not determinable within reasonable limits if major uncertainties exist about the realizability of the value;" thus, donations of used clothing and home goods are not valued nor is an inventory of items used for financial reporting.

Income Taxes

The Organization qualifies as a not-for-profit organization under 501(c)(3) of the Internal Revenue Code, and thus, is exempt from federal and state income taxes. Management believes there are no uncertain tax positions included in the financial statements.

Advertising Costs

The Organization expenses advertising costs as incurred. Advertising expense charged to operations for the years ended December 31, 2015 and 2014 was $1,918 and $895, respectively.

Uncompensated Absences

The Organization allows regular full-time employees with a minimum of six months or (180) days employment, to receive compensated absences. Employees are eligible to carry-over to the following year up to 2 weeks of unused compensated absences. As of December 31, 2015 and 2014, uncompensated absences were $4,986 and $8,819, respectively, and are included in the accrued expenses in the statements of financial position.

Reciassifications

Certain amounts reported in prior periods have been reclassified to conform to the current year's presentation. These reclassifications did not have a material effect on previously reported financial statements.

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NOTE 2 - CERTIFICATES OF DEPOSIT

Certificates of deposit with a face value totaling $1,279,510 and $1,154,062 at December 31, 2015 and 2014, respectively, were held by the Organization and restricted by the board. The board has designated three separate accounts as follows:

2015 2014 Operating reserves s 372,075 $ 370,383 Building reserves 406,259 404,818 Unrestricted reserves 501,176 378,861

Total Investments s 1,279,510 $ 1,154,062

These certificates bore interest rates ranging from 0.30% to 1.00% as of December 31, 2015 and 2014 and mature in 2016.

NOTE 3 - CONCENTRATIONS OF CREDIT RISK

The Organization maintains cash balances and certificates of deposit at financial institutions located in Louisiana. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 as of December 31, 2015 and 2014. The Organization's uninsured cash balances, including certificates of deposit, totaled $29,459 and $3,696 as of December 31, 2015 and 2014, respectively. The Organization has not experienced any losses in such accounts and management believes it is not exposed to any significant credit risk to cash.

NOTE 4 - LEASES

Effective June 1, 2012, the Organization entered into a six year operating lease agreement for the Thrift Store located in Covington, Louisiana next to the Food Bank. The lease will expire on May 31, 2018. For the years ended December 31, 2015 and 2014, rent expense was $12,000 per year and was included in Thrift Store operating expenses on the statements of activities and changes in net assets. Minimum future obligations on this lease are as follows:

Year ending December 31 Total 2016 S 12,000 2017 12,000 2018 5,000

s 29,000

NOTE 5 - CONTINGENCIES

Food Bank of Covington, LA, Inc. is subject to various legal and administrative proceedings arising in the normal course of business. Management believes that the settlement or resolution of the proceedings should not have a material adverse effect on the financial position or statement of activities. In addition, the Organization maintains that all matters will be fully covered by insurance.

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NOTE 6 - SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date that the financial statements were available to be issued, March 18, 2016, and determined that no events occurred that require disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.

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Supplementary Information


SCHEDULE OF COMPENSATION, BENEFITS AND

OTHER PAYMENTS TO AGENCY HEAD

Agency Head Name: Terri Turner-Marse, Executive Director

Purpose Amount Salary $

Bonus Benefits-insurance Benefits-retirement

Uniforms Per diem Reimbursements

Travel Fuel usage Conference travel

Continuing professional education fees Housing Unvouchered expenses

Special meals -

Total S -

* There were no payments to the Executive Director that were derived from the public funds

(state and/or local governmental funds and/or federal funds passed through a state or local

government agency) that the Organization receives.

See Independent Auditors' Report.

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A cm Carr, Riggs & Ingram, LLC £ 4330 Dumaine Street

INGRAM New Orleans, Louisiana 70119

CPAs and Advisors (504) 833-2436 (504) 484-0807 (fax) www.CRIcpa.com

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

To the Board of Directors of Food Bank of Covington, LA, Inc. Covington, Louisiana

We have audited, in accordance with the 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, the financial statements of Food Bank of Covington, LA, Inc. (a nonprofit organization) (the Organization), which comprise the statements of financial position as of December 31, 2015, and the related statements of activities and changes in net assets, and cash flows for the year then ended, and the related notes to financial statements, and have issued our report thereon dated March 18, 2016.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the Organization's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Organization's internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control.

A deficiency in internal controi exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Organization's financial statements are free from 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.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Organization's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

U.t

March 18, 2016

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A" — FOOD BANK OF COVINGTON, LA, INC.

SCHEDULE OF CURRENT YEAR FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 2015

SECTION I - SUMMARY OF AUDIT RESULTS

FINANCIAL STATEMENTS

Type of auditors' report issued:

Internal control of financial reporting:

Material weaknesses identified

Significant deficiencies identified that are considered to be material weaknesses

Noncompliance material to financial statement notes?

SECTION 11 - FINANCIAL STATEMENT FINDINGS

None noted.

SECTION III - COMPLIANCE AND OTHER MATTERS

None noted.

Unmodified

yes X no

yes X no

yes X no

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=k-FOOD BANK OF COVINGTON, LA, INC.

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED DECEMBER 31, 2014

SECTION II - FINANCIAL STATEMENT FINDINGS

None noted.

SECTION III - COMPLIANCE AND OTHER MATTERS

None noted.

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