Jane Place Neighborhood Sustainability Initiative, Inc....Jane Place Neighborhood Sustainability...

JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC.

FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2015

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

CPAs and Advisors

CRIcpa.com I blDg.cricpa.CDm

JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC. TABLE OF CONTENTS

REPORT

Independent Accountants' Review Report 1

FINANCIAL STATEMENTS

Statement of Financial Position 3

Statement of Activities 4

Statement of Cash Flows 5

Notes to Financial Statements 6

SUPPLEMENTARY INFORMATION

Independent Accountants' Report of Applying Agreed-Upon Procedures 10

Schedule of Compensation, Benefits and Other Payments to Agency Head 14

Schedule of Per Diem Paid to Board Members 15

Schedule of Findings and Responses 16

Compliance Questionnaire 17

Report

A cm C A R R RIGGS & INGRAM

CPAs and Advisors

Carr, Riggs & Ingram, LLC 4330 Dumaine St. New Orleans, Louisiana 70119

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

INDEPENDENT ACCOUNTANTS' REVIEW REPORT

To the Board of Trustees of Jane Place Neighborhood Sustainability Initiative, Inc. New Orleans, Louisiana

We have reviewed the accompanying financial statements of Jane Place Neighborhood Sustainability Initiative, Inc., {a nonprofit organization) (the "Organization"), which comprise the statement of financial position as of December 31, 2015, and the related statements of activities and cash flows for the year then ended, and the related notes to financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of Organization management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the 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 the financial statements that are free from material misstatement whether due to fraud or error.

Accountants' Responsibility

Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AlCPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

Supplementary Information

The information presented in the accompanying Jane Place Neighborhood Sustainability Initiative, Inc. Schedule of Compensation, Benefits and Other Payments to Agency Head and the Schedule of

Per Diem Paid to Board Members is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information was compiled from information that is the representation of management. The information was subjected to the inquiry and analytical procedures applied in the review of the basic financial statements, but we have not audited the supplementary information and, accordingly, do not express an opinion on the information presented.

Accountants' Conclusion on 2015 Review Engagement

Based on our review, we are not aware of any material modifications that should be made to the accompanying 2015 financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

U.C.

June 29, 2016

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Financial Statements

JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC. STATEMENT OF FINANCIAL POSITION

As of December 31, 2015

ASSETS

Current assets Cash and cash equivalents S 59,694

Non-current assets Note receivable from affiliate 343,548

Property and equipment Land

Buildings Furniture and fixtures

16,200 138,378

858 Total property and equipment

Accumulated depreciation

155,436

(37,910)

Net Property and Equipment 117,526

TOTAL ASSETS S 520,768

LIABILITIES AND NET ASSETS

Current liabilities Deferred development fee S 12,000

Total liabilities 12,000

Net assets Unrestricted 508,768

TOTAL LIABILITIES AND NET ASSETS S 520,768

See accomponying independent accountants' report and notes to financial statements.

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JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC. STATEMENT OF ACTIVITIES

i

For the Year Ended December 31, 2015

TEMPORARILY UNRESTRICTED RESTRICTED TOTAL

REVENUES

Foundation grant

City grant

Federal grant

Donation and other grant

Contributions

Rental income

Interest income

Net assets released from restrictions

17,549

114,139

3,600

1,043

319,946

42,000 S 234,924

43,022

(319,946)

42,000 234,924

43,022

17,549 114,139

3,600

1,043

Total Revenues 456,277 456,277

EXPENSES

Management and general

Insurance and taxes

Miscellaneous expenses

Depreciation expense

5,245

10,595

1,398

3,671

- 5,245 10,595

1,398

3,671

Total Expenses 20,909 20,909

CHANGE IN NET ASSETS 435,368 435,368

NET ASSETS - at the beginning of year 73,400 73,400

NET ASSETS - at the end of year $ 508,768 $ - s 508,768

See accompanying independent accountants' report and notes to financial statements.

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JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC. STATEMENT OF CASH FLOW

For the Year Ended December 31, 2015

CASH FLOWS FROM OPERATING ACTIVITIES Change in net assets

Adjustments to reconcile to net cash Provided by operating activities:

Depreciation

Contribution of real estate Changes in operating assets and liabilities:

Deferred development fee Predevelopment project Accounts payable

$ 435,368

3,671

(114,139)

12,000

102,870

(47,925)

Net cash provided by operating activities 391,845

CASH FLOWS FROM INVESTING ACTIVITIES Loan to affiliate (343,548)

Net cash used in investing activities (343,548)

NET CHANGE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS - at the beginning of year

48,297

11,397

CASH AND CASH EQUIVALENTS - at the end of year 59,694

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

In 2015, the Organization received a building from donors valued at $114,139.

See accompanying independent accountants' report and notes to financial statements. -5-

JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC. NOTES TO FINANCIAL STATEMENTS

NOTE 1: NATURE OF THE ORGANIZATION

Jane Place Neighborhood Sustainability Initiative, Inc. {the Organization) was organized in 2008 as a nonprofit organization with the purpose to support and contribute to the building of safe, affordable housing for low and moderate income residents in the Mid-City neighborhood of New Orleans, l_A; to preserve the quality and affordability of housing for future low income, and moderate income residents of the community; to promote sustainable land use and community development; to foster community participation and neighborhood unity. The Organization is organized on a non-stock basis, and there is but one class of membership. The Organization is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, except on net income from unrelated business activities.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies consistently applied in the preparation of the accompanying financial statements follows.

Basis of Accounting

The financial statements of the Organization are prepared on the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America.

Basis of Presentation

The Organization reports information regarding its financial position and activities according to three classes of net assets that are based upon the existence or absence of restrictions on use that are placed by its donors: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.

Unrestricted net assets are resources available to support operations. The only limits on the use of unrestricted net assets are the broad limits resulting from the nature of the Organization, the environment in which it operates, the purposes specified in its corporate documents and its application for tax-exempt status, and any limits resulting from contractual agreements with creditors and others that are entered into in the course of its operations.

Temporarily restricted net assets are resources that are restricted by a donor for use for a particular purpose or in a particular future period. The Organization's unspent contributions are reported in this class if the donor limited their use, as are promised contributions that are not yet due. The unspent appreciation of the Organization's donor-restricted endowment funds is also reported as temporarily restricted net assets.

Contributions of property and equipment or cash restricted to acquisition of property and equipment are reported as temporarily restricted net assets if the donor has restricted the use of the property or equipment to a particular program.

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

If donors specify a length of time over which the property or equipment must be used, the restrictions expire evenly over the required period. Absent that type of restriction for use, the Organization considers the restriction met when the assets are placed in service.

When a donor's restriction is satisfied, either by using the resources in the manner specified by the donor or by the passage of time, the expiration of the restriction is reported in the financial statements by reclassifying the net assets from temporarily restricted to unrestricted net assets.

Permanently restricted net assets are resources whose use is limited by donor-imposed restrictions that neither expire by being used in accordance with a donor's restriction nor by the passage of time. The portion of the Organization's donor-restricted endowment funds that the Organization is committed to maintaining in perpetuity are classified in this net asset class, as is the Organization's beneficial interest in a perpetual charitable trust held by a bank as trustee. There were no permanently restricted net assets as of December 31, 2015.

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 and disclosure of contingent 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

All cash related items having a maturity of three months or less from the date of acquisition are classified as cash and cash equivalents in the accompanying financial statements. At December 31, 2015, the Organization maintained checking accounts at various financial institutions. The Federal Deposit Insurance Corporation insures the accounts up to $250,000 as of December 31, 2015. There were no uninsured deposits as of December 31, 2015.

Property, Equipment and Depreciation

Land, buildings, and furniture and fixtures are recorded at cost. Fixed assets are depreciated on a straight line basis over the asset's useful lives - buildings 39 years; furniture and fixtures 5-7 years. Land is not depreciated in accordance with accounting principles generally accepted in the United States of America. Expenditures for repairs and maintenance are expensed as incurred unless the asset's useful life is extended whereby the expenditures are capitalized. As of December 31, 2015 there were no capitalized expenditures.

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Impairment of Long-Lived Assets

The Organization reviews its long lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When recovery is reviewed, if the undiscounted cash flows estimated to be generated by the property are less than its carrying amount, management compares the carrying amount of the property to its fair value in order to determine whether an impairment loss has occurred. The amount of the impairment loss is equal to the excess of the asset's carrying value over its estimated fair value. No impairment loss has been recognized during the year ended December 31, 2015.

Donated Assets

Non-cash donations are recorded as contributions at their fair market values at the date of donation.

Grant Income

In accordance with its bylaws, the Organization receives grants and contributions from various sources in furtherance of its purposes. Grant and contribution income is recognized when earned. The Organization derives substantially all of its revenues from grant income received from its donors.

NOTE 3: TRANSACTIONS WITH RELATED PARTIES

Development Fee

A development agreement was made and entered into as of March 11, 2015, by and between the Organization (the "Developer") and Jane Place L.L.C. Jane Place L.L.C. agreed to pay the developer a development fee in the aggregate amount of $60,000, which is deemed to be earned upon placement in service of the building located at 2739 Palmyra Street in New Orleans. As of December 31, 2015, $12,000 in development fees were received and recognized as deferred revenue since the building was not yet placed in service.

Note Receivable from Jane Place LL.C

The Organization entered into a loan agreement as the Lender with Jane Place L.L.C., (the "Borrower") as of March 11, 2015. The principal loan amount of $434,704 was made available for the Borrower to draw upon bearing an interest rate of 1% per annum and is payable from the Borrower's net cash flow in forty consecutive annual installments of principal and interest, which shall commence after the placed in service date of the property located at 2739 Palmyra Street in New Orleans. The entire unpaid principal balance and all accrued but unpaid interest is due forty years after the payment of the first installment. The loan is secured by a subordinate mortgage on

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NOTE 3: TRANSACTIONS WITH RELATED PARTIES (CONTINUED)

the Borrower's property. As of December 31, 2015, the principal balance of the note receivable was $343,548.

NOTE 4: SUBSEQUENT EVENTS

On January 31, 2016 the property located at 2739 Palmyra Street in New Orleans was placed in service. The terms of the development agreement deem the developer fees have been earned upon placement in service of the property. Furthermore, the terms of the loan agreement entered into by the Organization and Jane Place L.LC. states that the installments payable by the Borrower commence upon the placed in service date.

Management has evaluated subsequent events through the date that the financial statements were available to be issued, June 29, 2016, and, there were no other events that occurred that require disclosure, except the event as described above. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.

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Supplementary Information

A 0 ^ p p Carr, Riggs & Ingram, LLC RIGGS & 4330 Dumaine St. PRI

I % I INGRAM New Orleans, Louisiana 70119

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

INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES

To the Board of Trustees of Jane Place Neighborhood Sustainability Initiative, Inc. New Orleans, Louisiana

We have performed the procedures included in the Louisiana Government Audit Guide and enumerated below, which were agreed to by the management of Jane Place Neighborhood Sustainability Initiative, Inc., (a nonprofit organization) {the "Organization"), and the Legislative Auditor, State of Louisiana, solely to assist the users in evaluating management's assertions about Jane Place Neighborhood Sustainability Initiative, Inc.'s compliance with certain laws and regulations during the year ended December 31, 2015 included in the accompanying Louisiana Attestation Questionnaire.

Management's Responsibility for the Financial Statements

Management of Jane Place Neighborhood Sustainability Initiative, Inc. is responsible for its financial records and compliance with applicable laws and regulations. Management is responsible for the preparation and fair presentation of the 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 the financial statements that are free from material misstatement whether due to fraud or error.

Accountants' Responsibility

This agreed-upon procedures engagement was performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and applicable standards of Government Auditing Standards. The sufficiency of these procedures is solely the responsibility of the specified users of this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

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Agreed Upon-Procedures

Public Bid Law

1. Select all expenditures made during the year for material and supplies exceeding $30,000, or public works exceeding $150,000, and determine whether such purchases were made in accordance with R.S. 38:2211-2296 {the public bid law) or R.S. 39:1551-39:1775 (the state procurement code), whichever is applicable.

The above procedure was not applicable as no expenditures were made during the year exceeding $30,000.

Code of Ethics for Public Officials and Public Employees

2. Obtain from management a list of the immediate family members of each board member as defined by R.S. 42:1101-1124 (the code of ethics), and a list of outside business interests of all board members and employees, as well as their immediate families.

Management provided us with the required list including the noted information.

3. Obtain from management a listing of all employees paid during the period under examination.

Management provided us with the required list.

4. Determine whether any of those employees included in the listing obtained from management in agreed-upon Procedure 3 were also included on the listing obtained from management in agreed-upon Procedure 2 as immediate family members.

No exceptions were noted as a result of applying this procedure.

Budgeting

5. Obtain a copy of the legally adopted budget and all amendments.

Per discussion with management, the Organization does not have a legally adopted budget. As such, this procedure is not applicable.

6. Trace the budget adoption and amendments to the minute book.


7. Compare the revenues and expenditures of the final budget to actual revenues and expenditures to determine if actual revenues failed to meet budgeted revenues by 5% or more, or if actual expenditures exceed budgeted amounts by 5% or more. (For agencies

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that must comply with the Licensing Agency Budget Act only, compare the expenditures of the final budget to actual expenditures to determine if actual expenditures exceed budgeted amounts by 10% or more per category or 5% or more in total).


Accounting and Reporting

8. Randomly select six disbursements made during the period under examination and: a. Trace payments to supporting documentation as to proper amount and payee;


b. Determine if payments were properly coded to the correct fund and general ledger account; and


c. Determine whether payments received approval from proper authorities.


Meetings

9. Examine evidence indicating that agendas for meetings recorded in the minute book were posted or advertised as required by R.S. 42:11 through 42:28 {the open meetings law).


Debt

10. Examine bank deposits for the period under examination and determine whether any such deposits appear to be proceeds of bank loans, bonds, or like indebtedness.


Advances and Bonuses

11. Examine payroll records and minutes for the year to determine whether any payments have been made to employees that may constitute bonuses, advance, or gifts.


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Recommendations

We were not engaged to perform, and did not perform, an audit, the objective of which would be the expression of an opinion on management's assertions. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the use of management of Jane Place Neighborhood Sustainability Initiative, Inc. and the Legislative Auditor, State of Louisiana, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.

U.t

June 29, 2016

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JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC SCHEDULE OF COMPENSATION, BENEFITS AND OTHER PAYMENTS

TO AGENCY HEAD

For the Year Ended December 31. 2015 Agency Head: Shana Griffin, President

Purpose Amount Salary $ -

Benefits-insurance

Benefits-retirement

Benefits-other Car allowance Vehicle provided by government

Per diem Reimbursements

Travel

Registration fees

Conference travel Continuing professional education fees

Housing Unvouchered expenses Special meals

Add other accounts if necessary

Total $ -

No compensation, benefits or other payments were made to the agency head for the year ended December 31, 2015.

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JANE PLACE NEIGHBORHOOD SUSTAINABILITY INITIATIVE, INC. SCHEDULE OF PER DIEM PAID TO BOARD MEMBERS

For the Year Ended December 31. 2015 Agency Head: Shana Griffin, President

Board Member

Shana Griffin

Address

4006 Clematis Street, New Orleans, LA 70122

Amount

s-

Brice White 4006 Clematis Street, New Orleans, LA 70122

Isabel Barrios 4400 Spain Street, New Orleans, LA 70122

Maxwell Ciardullo 1022 Race Street #2, New Orleans, LA 70130

David Harms 3128 Orleans Avenue, New Orleans, LA 70119

Robin Gruenfeld 732 Independence St., Apt 4, New Orleans, LA 70117

Hannah Adams 2822 Bell Street, New Orleans, LA 70119

Julie Tweeter 3233 Belfort Street, New Orleans, LA 70119

Darin Acosta 3609 /z Iberville Street, New Orleans, LA 70119

Total $-

No per diem payments were made to board members for the year ended December 31, 2015.

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Broadmoor Improvement District Schedule of Findings and Responses

December 31, 2015

SECTION I: FINANCIAL STATEMENT FINDINGS

None Noted.

SECTION 11: COMPLIANCE FINDINGS

None Noted.

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LOUISIANA ATTESTATION QUESTIONNAIRE (For Attestation Engagements of Quasi-public Agencies)

6/30/2016 (Date Transmitted)

Carr. Riggs and Ingram 4330 Dumaine St New Orleans. LA 70119

(Auditors)

In connection with your review of our financial statements as of 12/31/2015 and for the period then ended, and as required by

Louisiana Revised Statute (R.S.) 24:513 and the Louisiana Governmental Audit Guide, we make the following representations to you. We accept full responsibility for our compliance with the following laws and regulation and the internal controls over compliance with such laws and regulations. We have evaluated our compliance with the following laws and regulations prior to making these representations.

These representations are based on the information available to us as of (date of completion/ representation).

Federal, State, and Local Awards

We have detailed for you the amount of federal, state, and local award expenditures for the fiscal year, by grant and grant year.

Yes[XI No[ ]

All transactions relating to federal, state, and local grants have been properly recorded within our accounting records and reported to the appropriate state, federal, and grantor officials.

Yes[X] No[ ]

The reports filed with federal, state, and local agencies are properly supported by books of original entry and supporting documentation.

Yes[X1 No[ ]

We have complied with all applicable specific requirements of all federal, state, and local programs we administer, to include matters contained in the 0MB Compliance Supplement, matters contained in the grant awards, eligibility requirements, activities allowed and unallowed, and reporting and budget requirements.

Yes[X] No [ ]

Open Meetings

Our meetings, as they relate to public funds, have been posted as an open meeting as required by R.S. 42:11 through 42:28 (the open meetings law). Note: Please refer to Attorney General Opinion No. 13-0043 and the guidance in the publication "Open Meeting FAQs," available on the Legislative Auditor's website at http://app1.lla.state.la.us/llala.nsf. to determine whether a non-profit agency is subject to the open meetings law.

Yes[X] No [ ]

Budget

For each federal, state, and local grant we have filed with the appropriate grantor agency a comprehensive budget for those grants that included the purpose and duration, and for state grants included specific goals and objectives and measures of performance

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http://app1.lla.state.la.us/llala.nsf

We have complied v/ith R.S. 24:513 A. (3) regarding disclosure of compensation, reimbursements, benefits and other payments to the agency head, political subdivision head, or chief executive officer.

Yes I X ]KG t ] Prior>Year Comments

We have resolved ail prior-year recommendations and/or comments.

Yes[xl Not 1 We have disclosed to you all known noncompliance of the foregoing laws and regulations, as well as any contradictions to the foregoing representations. We have made available to you documentation relaUng to the federal, state, and local grants, to include the applicable laws and regulations.

We have provided you with any communications from regulatory agencies or other sources concerning any possible noncompliance with the foregoing laws and regulations, including any communications received between the end of the period under examination and the issuance of this report. We will also discfose to you, the Legislative Auditor, and the applicable state grantor agency/agencies any known

mpliance that mav occur up to the date of yout report. it m^ occur up to the dat /d- Secretary 6/30/2016 Date

/•AiVi\,yii± Treasurer 6/30/2016 Date

.J M.y. President 6/30/2016 Date

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